Assistant Secretary Jose Fernandez Travels to Mexico, Turkey, Bangladesh, and Spain

Assistant Secretary of State for Economic and Business Affairs Jose W. Fernandez will travel to Mexico, Turkey, Bangladesh, and Spain May 20-29, 2013. He will meet with government and business leaders to further U.S. economic relations with the four countries.

From May 20-21, Assistant Secretary Fernandez will meet with government officials in Mexico City to discuss entrepreneurship, innovation, telecommunications, transportation, trade, and other economic issues.

Assistant Secretary Fernandez will then travel to Ankara from May 22-24, leading the U.S. delegation to the 10^th U.S.–Turkey Economic Partnership Commission (EPC) meeting. The EPC serves to advance the United States strong and growing economic partnership with Turkey on entrepreneurship, innovation, intellectual property rights, trade, and investment.

From May 25-28, Assistant Secretary Fernandez will visit Dhaka to participate in the second annual U.S.–Bangladesh Partnership Dialogue. He also will meet with government and business leaders to discuss trade, investment, and labor issues.

Assistant Secretary Fernandez will travel to Madrid from May 28-29, meeting with government and private sector officials to discuss the Spanish economic reform agenda, investment climate, and progress on intellectual property rights enforcement.

For updates, follow Assistant Secretary Fernandez on Facebook and Twitter @EconEngage.

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Global Trade Partners in the 21st Century

As Prepared

Thank you Lyal for the kind introduction.

I am delighted to be in South Africa again. I visited last fall with Secretary of State Hillary Clinton.

What was most striking then, and continues to be the case today, is the extent to which the image of Africa has changed. According to the IMF, growth in sub-Saharan Africa will surge to 6.1% next year, well ahead of the global average of 4%.

Africa is booming in nearly every sector, ranging from massive energy developments in Mozambique, Tanzania, Ghana, and other countries; to the growth of Rwanda and Kenya’s information and communications technology sectors; to South Africa’s thriving auto industry. And, though far from declaring victory, Africa is reaching a turning point in its hard-fought battles against poverty and corruption.

Today’s Africa looks nothing like what, in 2000, The Economist referred to as the “Hopeless Continent.” It is critical that we concentrate the world’s eyes on the new image of Africa, that of progress and promise. Perspectives are evolving—in 2011, The Economist referred to Africa as the “Rising Continent” and, last March, as the “Hopeful Continent.”

Trade is at the heart of Africa’s economic resurgence. So, in this context, I will speak first about America’s vision for global trade in the 21st century and then, focus on implications and, indeed, opportunities for Africa. America’s global trade agenda in the 21st century is shaped by a foundation laid, in large part, in the mid-20th century. After World War II, American and European policymakers worked together to build a set of international institutions that embodied democratic and free market principles.

The GATT—which led to the WTO—World Bank, IMF, and the OECD were designed to foster international economic cooperation. These institutions were vital to the economic prosperity of the United States, and to the success of America’s foreign policy and national security for the next three generations.

As we move into the 21st century, a new multi-polar global economy has surfaced. The emergence of a new group of economic powerhouses—Brazil, Russia, India, and China, of course, but also countries in Africa—has created momentum (if not necessity) for greater inclusiveness in the global trading system.

At the same time, these new players must assume responsibilities for the international economic system commensurate with the increasing benefits they derive from the global economy. In addition to the geography of international trade, the nature of trade and investment has evolved to include previously unimaginable issues such as e-commerce and sustainability.

So, part of our vision for trade in the 21st century is to build a system that is more inclusive, recognizes the new realities of economic interdependence, and matches increased participation in the global trading system with increased responsibility for the global trading system.

We are making progress with bringing new players into the global trading system as equal partners. Free Trade Agreements with Korea, Colombia, and Panama entered into force last year.

And, we are continuing negotiations on the Trans-Pacific Partnership—or TPP as it is more widely known. With Japan’s anticipated entry into the negotiations, TPP will grow to include 12 countries of different size, background, and levels of development. The agreement, when finalized, will encompass nearly 40% of global GDP and one-third of global trade.

In addition to TPP, we are embarking on a Transatlantic Trade and Investment Partnership with the European Union. TTIP—as it is being called—will strengthen economic ties between the United States and Europe, and enhance our ability to build stronger relationships with emerging economies in Asia, Africa, and other parts of the world.

TPP and TTIP are truly historic undertakings. Our objective is not only to strengthen economic ties with the Asia-Pacific and Europe, but also to pioneer approaches to trade and investment issues that have grown in importance in recent years.

These agreements will seek to break new ground by addressing a multitude of heretofore unaddressed non-tariff barriers, setting the stage for convergence on key standards and regulations, and establishing high quality norms and practices that can spread to other markets. TPP, for example, will raise standards on investment and electronic commerce, and afford protections for labor and the environment.

Our agenda also includes strengthening the multilateral trading system through the World Trade Organization. For example, the United States would like to see a multilateral Trade Facilitation Agreement, which would commit WTO Members to expedite the movement, release, and clearance of goods, and improve cooperation on customs matters. A Trade Facilitation Agreement would be a win-win for all parties—Africa especially.

Cross-border trade in Africa is hindered by what the World Bank calls “Thick Borders.” According to the latest Doing Business Report, it takes up to 35 days to clear exports and 44 days to clear imports in Africa. Clearing goods in OECD countries, in contrast, takes only 10 days on average and costs nearly half as much. Countries like Ghana and Rwanda have benefited tremendously from the introduction of trade facilitation tools and policies.

Ghana, for instance, introduced reforms in 2003 that decreased the cost and time of trading across borders by 60%, and increased customs revenue by 50%. A multilateral Trade Facilitation Agreement will create a glide path for increased trade with and within Africa.

Our views for 21st century global trade partnerships go beyond Europe and the Asia-Pacific, and efforts at the WTO. We are committed to supporting Africa’s integration into the global trading system. The cornerstone of our trade relationship with sub-Saharan Africa is the African Growth and Opportunity Act—known as AGOA. Of all of our trade preference programs, AGOA provides the most liberal trade access to the U.S. market.

Exports from Africa to the United States under the AGOA have grown to $34.9 billion in 2012. While oil and gas still represent a large portion of Africa’s exports, it is important to recognize that non-petroleum exports under AGOA have tripled to nearly $5 billion since 2001, when AGOA went into effect. And, compared to a decade ago, more than twice the number of eligible countries are exporting non-petroleum goods under AGOA.

South Africa, in particular, has made great strides in diversifying its exports to the United States. Thanks to AGOA, the United States is now South Africa’s main export market for passenger cars, representing more than 50% of exported value in 2012. Because AGOA is such an important mechanism for African countries to gain access to the U.S. market, the Administration is committed to working with Congress on an early, seamless renewal of AGOA. Our trade relationship with Africa goes beyond AGOA. For instance, AGOA represents only one-quarter of South African exports to the United States. The composition of South Africa’s exports to the United States, moreover, reflects complex interdependencies and industrial goods.

And, our trade relationship with Africa is not just about one-way trade. There is an immense opportunity for U.S. companies to do business on the continent.

We recently launched the “Doing Business in Africa Campaign” to help American businesses identify and seize upon trade and investment opportunities in Africa. The campaign was announced in Johannesburg, in part, because South Africa can play a prominent role in directing U.S. investment into other parts of the continent.

Although progress has been made on diversifying exports beyond energy, there is much more to be done. African ingenuity and entrepreneurship must be unleashed to drive innovation and growth throughout the continent. This requires closer integration to share ideas, transfer knowledge, and partner on solutions. Through AGOA and the “Doing Business in Africa Campaign”, we are promoting a business climate in Africa that enables and encourages trade and investment. However, realizing these goals is goes beyond trade preferences and commercial linkages.

Africa is also featured in America’s vision for global trade in the 21st century.

For example, we recently launched the U.S.-East African Community Trade and Investment Partnership—the first of its kind—to expand two-way trade and investment. The Partnership is designed to build confidence among the private sector by building a more open and predictable business climate in East Africa. We are considering a variety of mechanisms to accomplish this, including a regional investment treaty and trade facilitation agreement. The Partnership highlights our desire to help Africa integrate and compete in today’s global economy.

I will conclude with one final point. I began by saying that trade is at the heart of Africa’s economic resurgence. Trade is also at the heart of America’s economic recovery. We have a common interest and a common goal.

When it comes to enhanced trade, what is good for Africa is good for America. And what is good for America is good for Africa.

Thank you.

The Office of Website Management, Bureau of Public Affairs, manages this site as a portal for information from the U.S. State Department.
External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.

2013 Global Diaspora Forum

As prepared

The diaspora experience has long been “America’s Story.” As Russell Shorto’s remarkable book, The Island at the Center of the World, details, at the time the Dutch ceded Manhattan to the British, in 1664, there were only 400 inhabitants on the island. Yet, they were a very diverse group indeed; they spoke 18 different languages—a microcosm of the much larger diaspora that was to follow.

Seventeenth-century Manhattan—enriched by inhabitants from many parts of the world—was truly multi-ethnic. Its citizens were creative and entrepreneurial. They valued free trade, individual rights, and religious freedom. And they valued opportunity.

Centuries later, this description of Dutch Manhattan not only fits New York, but also the United States as a whole. Today, almost one quarter of Americans are first- or second-generation diasporans.

In New York, 41 percent of students in the city’s schools speak a language other than English at home. Los Angeles has identified 109 different languages its students use at home. Many other American cities, and many smaller towns as well, are enriched by immigrant communities that speak many languages.

People who have migrated here from all over the world call America home, and cherish their American citizenship. They also significantly enrich our society and our country. The creativity and success of America have been strengthened by new waves of people from distant lands who bring their talents, hard work, innovativeness, and varied backgrounds together to add dynamism to our economy and our country.

My grandparents came from Eastern and Central Europe. Getting here wasn’t easy. Neither was life when they first arrived. But America welcomed them and gave them opportunity. And they sought throughout their lives to give back to America. I like to feel that in some small way, I am following in their footsteps of trying to give back in gratitude for the welcome America gave them and the opportunity it has given all of us. There are millions like me with similar stories.

The Importance of the Global Diaspora Forum

Let me now share a few thoughts on why I think this Forum is so important.

The goal of this forum is to underscore that in many ways America’s story is the world’s story. The incredibly important role of diaspora communities in America’s success is well known. And I’ll shortly describe a few examples. But I also want to underscore that this is not a one-way street.

Diasporans are our grass-roots ambassadors. They offer unique expertise, insight, and personal commitment. They bring language and cultural familiarity with other parts of the world. They understand business opportunities and risks in their home countries. They are often members of large personal and professional networks with people of similar backgrounds. And they often return to their countries of origin to tell people there about America. When they do, they are widely seen as credible and enthusiastic ambassadors.

Just as importantly, they are uniquely motivated. For diaspora communities, diplomacy and development in their countries of origin are intrinsic and personal, not simply policy issues. Supporting higher living standards, economic growth, and political stability in their countries of origin or heritage is about helping their friends and families.

Remittances are one basic connection, and provide an important lifeline for millions of households around the globe. According to the Hudson Institute, in 2010, remittances from the United States to other countries totaled $95.8 billion. Diaspora communities also provide critical business linkages to global markets for countries that may be struggling to capture the benefits of globalization.

Diasporans are also important sources of innovation for America. In the United States, immigrant-owned companies generate an estimated $67 billion in business each year. Strikingly, immigrants are 30 percent more likely to form new businesses than U.S.-born citizens.

In 2011, we in the State Department launched the International Diaspora Engagement Alliance, a unique multi-stakeholder platform for partnership-building with diaspora communities. This platform harnesses the investment power of more than 1,500 diaspora groups to promote innovation, entrepreneurship, and philanthropy in their countries of heritage. It also seeks to strengthen our linkages in areas such as the sciences and medical research.

Diaspora Communities in the Sciences

U.S. universities have long attracted the best scientific, medical, and engineering talent from around the world and, through them, built partnerships to share and promote innovative ideas, medical cures, and cutting edge technology with their counterparts around the world. Albert Einstein, Andy Grove, and Sergey Brin are only three famous examples.

In the United States, a quarter of foreign-born workers with college degrees are employed in scientific and engineering professions. The medical profession benefits from similar numbers. From 1990 to 2004, almost half of U.S. Nobel laureates in science fields were immigrants. Many remain in close touch with their countries of origin, and are powerful multipliers for diplomacy, development, medicine, and science.

Nowhere is the role of diasporans more prominent than in Silicon Valley—the innovation capital of the world: 52 percent of all startups there have been founded by immigrants. Among U.S. technology companies founded between 1995 and 2005, 25 percent had a chief executive or lead technologist who was foreign-born. These companies generated $52 billion in revenue and employed 450,000 workers in 2005. So when anyone argues that immigration costs jobs for others, the facts demonstrate quite the opposite. Immigration, across many decades and generations, creates jobs for hundreds of thousands of people.

Let me cite a couple of examples to demonstrate the power of diaspora networks. First, I’d like to mention Dr. Wole Soboyejo, a Nigerian-American professor of mechanical and aerospace engineering at Princeton. He splits his time between research in the United States and his role as President of the African University of Science and Technology in Abuja. Investments like this in Nigeria’s engineering talent are facilitating cutting edge innovation that will benefit both Africa and the world. I am delighted that Dr. Soboyejo is with us today to share his story.

Another diaspora innovator is Aishwarya Ratan, who has worked on optimizing data entries for local microcredit co-ops in India and who presented on behavioral insights to financial inclusion at the Google “Solve for X” session yesterday. Her system holds tremendous promise in India and other developing countries. Indeed, microfinance co-ops serve 86 million households in India. Improving record keeping could help expand borrowing from banks. Ratan’s day job is Director of the Microsavings and Payments Innovation Initiative at Yale University.

Programs for Enhancing the Impact of Diaspora Networks

The cases of Dr. Soboyejo and Aishwarya Ratan show how, on a personal level, members of diaspora communities can make a difference.

There is also a lot of work underway at the State Department and USAID to facilitate connections between diaspora groups and increase their impact on development.

Last year at this forum, we announced a new initiative called Networks of Diasporas for Engineers and Scientists, or NODES—a partnership between the Department of State, the American Association for the Advancement of Science, and the National Academy of Sciences. The basic idea is simple—to connect diaspora scientists across boundaries by fostering knowledge networks; the sharing of best practices; the identification of capacity-building tools; and the creation of links between professional societies, universities, NGOs, and government agencies at home and abroad.

In the past year, NODES convened scientists and diaspora groups from more than 30 countries at the nation’s largest scientific meeting and built a set of knowledge resources that we are sharing with this actively expanding network.

Many diaspora communities are also ramping up their programs to create positive change. In the past year, a number of diaspora communities have hosted conferences and diaspora forums. Among others, Jamaicans, Albanians, Haitians, and Guineans have recently held forums aimed at engaging and reorganizing their diaspora communities.

Governments are also getting into the act. Last July, under the leadership of my very good friend Dino Djalal, Indonesia’s outstanding Ambassador to the United States—who is present here today—the Indonesian Embassy organized the first-ever world Congress of Indonesian Diasporas in Los Angeles.

Diaspora Communities from the Middle East

The State Department has worked hard over the past couple of years to strengthen the links between the American diaspora communities from the Middle East countries in transition and their home countries. The numbers are large—there are, for example, nearly 200,000 Egyptians living in the U.S.

The potential of these diaspora communities is vast, and goes far beyond serving as a source for remittance flows, as important as they are. They offer critical sources of investment capital and business skills that the Middle East countries in transition need to tap in order to place themselves on a sustainable path to development.

Diaspora communities are also contributing by way of volunteerism. These communities volunteer their time and expertise. And we are currently thinking through ways to partner with various organizations to amplify volunteer efforts by diaspora communities from the Middle East in order to scale up and strengthen capacity-building in the region and across a number of key areas, including economic development and civil society.

There is a critical confidence aspect as well. We have encouraged the governments in the region to reach out to their diaspora communities to encourage them to do business and invest in their countries of origin. If they succeed, the impact on confidence could be large, as markets see the overseas investors most knowledgeable about these countries investing their funds.

In addition, scientific diasporas in the United States can be especially helpful in maintaining contacts with scientific communities in their countries of origin. For example, there are 470,000 Iranians living in the U.S. The Iranian diaspora have contributed significantly to the U.S. National Academy of Sciences’ workshops that have taken place over the past decade in conjunction with the Iranian scientific community.

These workshops have covered topics of benefit to both countries, including food-borne diseases, water conservation reuse and recycling, ecology of the Caspian Sea, drought forecasting and management, and improving earthquake mitigation. Moreover, the premier scientific and technological university in Iran has more alumni in California than in any other part of the world. This is one of the most meaningful ways of maintaining links between the United States and Iran today.

In addition, our Global Innovation through Science and Technology initiative leverages diaspora members to serve as mentors and experts. Individuals such as Faysal Sohail, a venture capitalist with ties to Saudi Arabia, provide advice and guidance to aspiring young entrepreneurs from the Middle East, as well as Africa and Asia.

Conclusion

Deepening and expanding diaspora networks can do much to make America a more responsive and effective leader around the world. We can develop stronger bonds with other nations—through their civil societies, business leaders, religious communities, women, and minorities.

This Forum is a celebration of America’s diaspora communities. It is our hope that by bringing you together, we will create new opportunities for partnerships with the private sector, civil society, and public institutions in order to make your engagements with your countries of origin or heritage effective, scalable, and sustainable.

When I walk down the streets in my other home city—New York City—as I love to do, and did last Sunday with a very good friend of mine, I am always proud to see so many people from different countries, cultures, and ethnicities living together and working together. It makes me proud that America attracts and welcomes so many people from other parts of the world. We should celebrate our diversity, because that is what in many ways makes us Americans.

It also makes me proud when I see the contributions that wave after wave of immigrants have made.

And, for America to remain the world’s beacon, as well as its most dynamic economy and society, we need to keep our doors open and be a land of opportunity for all. We need to invite, welcome, and honor those from around the world who want to come here for a new life; who want to build new businesses, engage in the creation of new technologies, and contribute to our medical science; and who want to work hard and to make our nation a better place for themselves and their children. So many before them have done this, and it is in our nation’s interest that more people have the opportunity as well.

On behalf of State Department, I welcome your ideas and your support in this growing partnership, and warmly welcome you to this Forum. I thank you for coming and for your leadership, energy, commitment, and contributions to America.

Thank you.

The Office of Website Management, Bureau of Public Affairs, manages this site as a portal for information from the U.S. State Department.
External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.

Remarks at Fourth Yale-TERI Energy Summit

Thanks so much for the opportunity to speak to this distinguished audience. Yale and TERI’s partnership – and leadership – to advance clean and innovative energy solutions has made this a vital forum for sharing new ideas and casting an ambitious vision for the future. TERI’s focus on clean energy solutions dates back to the mid-1970s, which turned out to be very prescient. Today, clean energy is at the center of our thinking on powering the economies of the future.

I’d like to extend special thanks to all of the CEOs and other business leaders here today. Your passion and ingenuity are central to the United States’ and India’s quest to help grow mutually beneficial clean energy ecosystems.

Ladies and gentleman, it’s a remarkable time to be engaged in a discussion about clean energy. We’ve recently seen enormous changes in the global energy landscape. And the nexus between energy and the environment is more relevant than ever.

The United States has four key priorities related to the future of energy use. Not coincidentally, each dovetail with our clean energy goals.

• First, we will maintain our commitment to renewable energy – wind, solar, geothermal, and hydro – and put a premium on new innovation and technological advances;
• Second, we will harness the “natural gas revolution” in the United States to meet our own energy needs as an intermediate or “bridge fuel” opportunity;
• Third, we will continue to pursue the highest environmental standards, in the spirit of the Clean Air Act and other efforts to limit harmful emissions; and
• Fourth, we will use existing energy more efficiently – in essence, to get more bang for our buck. That isn’t just good public policy, it makes good business sense.

There’s no doubt that our private sectors have a critical role to play in achieving these ambitious goals. But our governments have a responsibility to help foster the right environment for innovation; we must ensure that nothing stands in the way of quickly taking the best ideas conceived from Hyderabad to Houston, from Madhya Pradesh to Massachusetts, to the broadest possible market.

Simply put, governments must create policies that allow our companies to work together seamlessly. That means avoiding policies that hinder innovation, such as subsidies to local producers, measures that favor indigenous over foreign companies, or technology transfer requirements as a pre-condition for market access. We’re discussing these issues with our Indian friends through bilateral engagements like these like the Clean Energy Ministerial and the U.S.-India Energy Dialogue.

We are also expanding our bilateral cooperation on clean energy through the U.S.-India Partnership to Advance Clean Energy, or PACE, which has mobilized over $1.7 billion dollars to finance clean energy initiatives. In addition, a $125 million public-private joint research center is being created that will be led by 95 government, research, and private organizations.

President Obama is taking a leadership role in these efforts. He recently called on Congress to establish an “Energy Security Trust,” which would fund groundbreaking research focused on cost-effective technologies – like electric vehicles, homegrown biofuels, fuel cells, and domestically-produced natural gas.

We are also talking to the Government of India at all levels about energy issues – from the Ministry of New and Renewable Energy to the Ministry of External Affairs and the Prime Minister’s Office. When we hold the U.S.-India Strategic Dialogue this summer, clean energy cooperation will be a key part of the agenda.

We have much to be optimistic about. Clean energy technology is cheaper than it has ever been – according to one report photo-voltaic module prices are down 80% percent since 2008, and 20% just in the last year. In 2012 alone, a whopping 88 gigawatts of new clean energy capacity became available around the world, more than half of that from the wind sector.

Energy and climate change issues are important not just for our partnership with India, but for our broader strategy for the region. We believe that collaboration in this area can drive broader cooperation and economic connectivity, to help make the region more secure and prosperous. That’s why we’ve been such a strong supporter of regional energy and economic integration efforts to significantly increase economic connectivity across Asia.

USAID’s South Asia Regional Initiative for Energy Integration program, for example, facilitates cross-border energy trade, expand access to clean energy, and build power-sector capacity to integrate energy supplies across the entire region.

And we’ve been strong advocates for the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, or TAPI, which stands to bring enormous energy relief to a region still saddled with aging coal generation facilities and inefficient power generation methods. Today, more than half of India’s power comes from coal. TAPI would help shift the region away from carbon-based energy sources and could allow for unprecedented cooperation and commercial synergy.

These efforts are creating new opportunities to expand clean energy generation, which many never thought possible. The key to their success, of course, is you – the entrepreneurs and innovators. I can’t wait to see what you will come up with next, and we stand ready to work together toward a cleaner and more prosperous future. Thank you.

The Office of Website Management, Bureau of Public Affairs, manages this site as a portal for information from the U.S. State Department.
External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein.

World Cultural Economic Forum

Good morning and thank you for that kind introduction.

Governors, mayors, ministers, ambassadors, and other esteemed guests representing cities and countries around the world, it is a sincere privilege to be here with all of you. We are grateful that Ambassador Sergey Kislyak of the Russian Federation, with whom I have had the privilege to work, and the Ambassadors of Canada and Bangladesh have joined us today.

I would like to thank Mayor Landrieu and the City of New Orleans and the U.S. Conference of Mayors for hosting this dynamic program dedicated to driving the creation of vibrant cities. I am delighted to bring greetings from Secretary of State John F. Kerry to each of you as you gather to explore new ways to harness the power of culture as a force for economic and social change. What better city than New Orleans to host this event. Over the years, the people of New Orleans have demonstrated the resilience of the American spirit. We have witnessed New Orleans City leaders work tirelessly to build a stronger and more secure community.

During your time in New Orleans, you will have the chance to experience all that Louisiana has to offer – its art, music, cuisine, history, and more. I expect you will build new partnerships, meet like-minded leaders, and find new ways to cultivate the unique culture of your own city. And, hopefully, you will leave New Orleans with a deeper understanding of our shared history and the ties that bind our cities together.

As the Special Representative for Global Intergovernmental Affairs, I lead the U.S. Department of State’s efforts to collaborate with state and local leaders and their counterparts abroad to foster economic, cultural, and educational relationships. My office is charged with building strategic peer-to-peer relationships with U.S. state and local officials and their foreign counterparts around the world.

In this context, pragmatic global partnerships between mayors from cities around the world that focus on solutions are essential to solving global challenges, such as climate change, human trafficking, poverty, food security, governance, and transnational crime.

U.S. foreign policy traditionally will be focused on nation-to-nation relationships. But the scope of what defines nation-to-nation conversations are shifting in the modern, more global, and more flattened world – rendering city-to-city, and state-to-state dialogues just as critical to the larger context of executing, implementing, and achieving a nation’s overarching diplomatic goals.

We understand that building peer-to-peer relationships between state and local elected officials has a direct effect on foreign policy that often goes unrecognized. Building these relationships and encouraging these engagements at the subnational level has the potential to be a force multiplier, expanding the reach and effectiveness of soft power.

Peer-to-peer relationships provide state and local leaders around the globe with an intimate glance into the American way of life, and, more importantly, into our democratic institutions and system of governance. Even at a more basic but equally important level, these interactions develop trust – an attribute essential to developing strong bilateral ties.

Confronting some of the most difficult global challenges will require innovative approaches to complex problems. Subnational engagement promotes the interchange of ideas and the adoption of best practices across different spheres. These peer-to-peer relationships between local leaders are critical if we are going to address difficult issues like climate change and urbanization.

One of the most serious challenges that we face today is the economy. When I started this job three and a half years ago, I reached out to local leaders in the United States who were engaging internationally, and asked them how the U.S. Department of State could assist them. The number one answer was to promote economic growth within their communities. Mayors and governors lead foreign trade missions because it is in their interest to do so. It is in the interest of our national economy to help local officials succeed in promoting their city or state, and ultimately making connections that lead to trade flows and economic growth which benefit all of us.

We have come to know that subnational engagement utilizes our state and local leaders as an extraordinary source of innovation, talent, resources, and knowledge. After all, it is the state and cities that are the engines of growth at the ground level where the transition from policy to practice becomes most visible.

Twenty-first century global challenges require us to work with new partners to collaborate and innovate globally to address common challenges. This is a core principal of subnational engagement, a strategy for creating partnerships for achieving modern diplomatic goals by including and engaging all the elements of our national power and leveraging all forms of our strength.

When former Secretary of State Clinton created the Office of Global Intergovernmental Affairs in 2010, she emphasized the need to utilize local leaders as a key component in the much needed, widespread, and deep-rooted efforts to take on our world’s greatest challenges. A key part of that charge is empowering subnational officials to lead their states and cities to a stable and secure future.

My job is to connect what the Federal Government does best with what state and local governments are doing and can do globally.

To that end, the Office of Global Intergovernmental Affairs, in conjunction with U.S. Embassies and bureaus, has led the negotiations and secured collaboration frameworks confirming commitments to prioritize subnational engagement with: Brazil (U.S.-Brazil Memorandum of Understanding to Support State and Local Cooperation), China (Memorandum of Understanding Supporting U.S.-China Subnational Cooperation), India (U.S.-India Conversation Between Cities), and Russia (Joint Statement on Strengthening U.S.-Russian Interregional Cooperation). In addition, we work closely with the U.S.-Nigeria Binational Commission.

The establishment of these four historic agreements provides opportunities for state and local leaders to increase exports, foreign direct investment, tourism, and other economic activity to support job creation and global competitiveness. Additionally, these cooperative frameworks allow subnational leaders to form innovative partnerships for education and sustainability. Advancing global collaboration at the local level is a catalyst for positive economic impact in cities across the nation.

We also have facilitated opportunities for state and local participation in the African Growth and Opportunity Act (AGOA) Forum events in Kansas City, MO in 2010, and Cincinnati, OH in 2012. The AGOA events were attended by African ministers of trade, infrastructure, and energy, as well as African business leaders and entrepreneurs.

I am also in New Orleans this week to advance U.S.-Brazil subnational cooperation. My office and the State Department Bureau of Diplomatic Security are co-hosting a two-day Symposium on Security for Major Sporting Events. We convened security officials from the Brazilian states which will host the 2014 World Cup games and officials from eight U.S. federal, state, and local law enforcement agencies responsible for the organization and support of Super Bowl XLVII in New Orleans to share best practices on the coordination of the largest annual sporting event in the United States. The recent tragedy in Boston reminds us of the importance of effective collaboration with local officials on the security of major events. The experience underscored the importance of heightened U.S.-Brazil cooperation on security.

Over the past three and a half years, I have worked closely with U.S. Ambassador to Brazil Thomas A. Shannon Jr., Mission Brazil and the Bureau of Western Hemisphere Affairs to expand relationships between U.S. mayors and governors and their counterparts in Brazil to encourage collaboration in areas of mutual interest, such as education, cultural and technical exchange, economic growth, sustainable development, democracy, social inclusion, and preparation for the 2014 World Cup and 2016 Olympic and Paralympic Games.

In April 2012, the United States and Brazil signed a Memorandum of Understanding (MOU) to Support State and Local Cooperation. This agreement affirms our mutual resolve to strengthen and expand cooperation and encourage peer-to-peer exchanges between subnational officials and local populations. These exchanges further enable local governments to bolster trade and investment, share ideas and best practices, and advance local priorities, while contributing to mutual understanding between our two countries.

In support of this agreement, I have traveled to Brazil and visited almost all of the host cities and states of the 2014 World Cup and 2016 Olympic and Paralympic Games. My travels and direct contact with federal and local leaders have provided an excellent opportunity to bolster collaboration between local officials in Brazil and the United States. In addition, U.S.-Brazil cooperative efforts have focused on building economic opportunities for the U.S. private sector through Brazil’s unique position as host of these events.

At the request of Brazil’s Ministry of Sports, I traveled to Sao Paulo and Brasilia in November of last year with a dynamic delegation of sports and entertainment business leaders. The delegation’s collective and diverse experience enabled discussion on a variety of themes within the context of the mega-sporting events, including business opportunities, the creation of a positive legacy, the importance of community involvement, and racial and social inclusion. It also demonstrated the many possibilities for public and private sector engagement with the United States.

I returned to Brazil in March with a delegation of U.S. Government, private sector, and business leaders to further these discussions. We met with key interlocutors who are working actively to expand opportunities for partnerships between U.S. and Brazil state and local officials and the private sectors. Key meetings included discussions with: the Ministry of Foreign Relations; Agnelo Queiroz, Governor, Federal District of Brazil; the Minister of Justice, Special Secretariat for Security for Major Sporting Events; the Minister of Sports; and the leadership of the National Council of State Administration.

These meetings were a great opportunity to talk about the continued U.S. commitment to assisting Brazil in a wide range of areas which included the Brazilians’ interest in collaboration on security; youth development and training; women in sports; social and racial inclusion; accessibility; English language training; and cultural exchanges.

With approximately 400 days until the start of the World Cup, we are moving rapidly on several fronts to promote U.S.-Brazil cooperation to support the organization of mega-sporting events.

I will leave you today with a quote from John Kerry’s first foreign policy address as Secretary of State at the University of Virginia on February 20, 2013: “In today’s global world, there is no longer anything foreign about foreign policy.”

Secretary Kerry believes that the everyday lives of the American people are more intertwined than ever before with the lives of citizens in countries throughout the world. No one nation can stand alone.

In the global challenges of diplomacy, development, economic security, and environmental security, we will feel our success or failure just as strongly as people in cities throughout the world who we will never meet.

We must understand and utilize the positive connection between culture, people, the economy, and diplomacy worldwide.

I thank you for your time today. I hope you take full advantage of this wonderful program and come away with a deeper understanding of the American people – and with enduring friendships that will strengthen the ties of our cities. 

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Energy Diplomacy in the 21st Century

Mr. Minister Aung,  let me first of all welcome you to the United States.

Let me begin by thanking the Offshore Technology Conference and the U.S. Department of Commerce for organizing this event and for offering this opportunity to discuss our perspectives on the importance of the oil and gas sector in Myanmar, as well as U.S. engagements in this area. We are all here because we share a sense of the tremendous potential in the region; we all sense the opportunity to turn the corner in a lasting and responsible manner.

President Obama’s historic trip in November highlighted the continued progress Myanmar is making on key reforms, including with regard to human rights. The United States Government is working hard to support President Thein Sein, others in his government, and all those looking to help the country as it continues down the path of democratic reform. A vital element of these reforms will be to strengthen and modernize the country's management of its natural resources, in particular within the oil and gas sector. We continue to work closely with the government to identify where we can be of assistance in helping Myanmar reach the ultimate goal of creating a transparent, well-managed energy sector that can attract the many responsible, highly regarded oil and gas companies that are represented here in this room.

Turning particularly to U.S. oil and gas companies -- we are certain that, given all of your expertise and capabilities, you have proven around the world that your participation will set a model for responsible investment and business operations as well as contribute to further reform and promote economic development and contribute to the welfare of the people. The U.S. government is dedicated to doing everything it can to work with you to encourage and support responsible investment. We want U.S. companies to invest and to do so in a socially and environmentally responsible manner that can serve as a model for others and benefit all of the people in the community. With that said, we have paired our actions to ease sanctions with putting in place reporting requirements for U.S. companies that encourage responsible investing, including with regard to promoting transparency and respect for human and labor rights, as well as supporting sound environmental practices, and land use.

Although the country has one of the world’s oldest oil sectors, with production stretching back into the mid-1800s, it also contains sizable undiscovered oil and gas resources and production potential, particularly in the deep water. The opportunities for potentially massive additional revenue from these resources are very promising, but we have to recognize instances of conflict and human rights abuses associated with the extractive industries make sound energy sector governance and transparency a priority for our bilateral engagement.

In order to help shape the deepwater licensing round now underway, last December the State Department, under the auspices of our Energy Bureau’s Energy Governance and Capacity Initiative (EGCI) hosted the Ministers of Energy and of Mines, as well as the Managing Director of the state-owned hydrocarbon company, MOGE, in New Orleans and in Washington to talk about the country's government's plans and about best practices in transparent oil and gas sector licensing and to witness an offshore lease sale for the Gulf of Mexico. The Energy Governance and Capacity Initiative has been a tool used with a number of countries around the world to provide targeted help on particular matters pertaining with how governments deal with particular legal, regulatory, or other matters in overseeing their oil and gas sectors.

The trip was very well received and we hope that some of the practices and ideas observed and discussed here in the United States will prove useful and make their way into the licensing practices underway now. This was not a one-off event, and we will continue to engage with the government under our EGCI program. Moving forward we look to engage with the Ministry of Energy and MOGE on legal reforms, sector management, and financial accountability processes.

There are of course many ongoing international efforts to enhance transparency and strengthen energy governance within the country, and we make every effort to have our efforts complement those broader international programs. The most prominent example is the Extractive Industries Transparency Initiative (EITI). We support and encourage the country’s progress towards EITI implementation, and are encouraged that they plan to send a large, high level delegation to the EITI Global Conference in Sydney in May. (And let me add a note here that as a member of the EITI's Board, I particularly hope we will have a chance to talk further in Sydney with your country's delegation.)

Energy relations between our two governments will not, and should not, be limited to the oil and gas sector. Indeed, the oil and gas sector should not and cannot be isolated from the larger energy sector in the country. As protests in Rangoon made clear last year, the expectation of citizens that their government will provide electricity to a greater portion of the country is of paramount importance. The country has Asia’s lowest electrification rate at only 27 percent. Its significant gas resources can help meet growing demand, but the country currently lacks the legal, regulatory, and physical infrastructure to utilize effectively and to optimize this resource. The U.S. government, therefore, is working with the World Bank and the Asian Development Bank to develop power sector and rural electrification investment plans, in coordination with the UN’s Sustainable Energy for All initiative. It is our profound hope that the gas that your companies will find and develop will not only make your investments worthwhile, but will also help power a more inclusive and self-sustaining electrical power grid within the country

The State Department and Embassy are here to assist and partner with the country in order to act upon the new and exciting opportunities that are being generated through the ongoing political and economic reforms.

Governments, the private sector, and most importantly the people will benefit from sound, sustainable development of the country's hydrocarbon resources. In the complex and new environment before us, it is critically important that we think how best to partner to ensure stability and help achieve prosperity in the years to come. U.S. investors, producers, supply companies come with unmatched experience, technological know-how, creativity and drive; they come with a record of achievement and success in dealing with challenges in the energy sector around the world. They are interested in bringing this experience, this expertise, this spirit to help Myanmar and its people capture the benefits of the country's resources. There are great opportunities for mutual benefit, and I know the U.S. companies here will do their due diligence and invest responsibly for the prosperity of all of the people, restoring the country to its traditional role at the crossroads between East and South Asia.

Thank you.

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Seventh Meeting of the Dominican Republic-Central America-United States Free Trade Agreement Environmental Affairs Council

Building on a strong foundation of cooperation and shared commitment to address mutual environmental concerns, the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) Environmental Affairs Council (EAC) will hold its seventh meeting in Santo Domingo, Dominican Republic on May 9. U.S. Principal Deputy Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs Judith Garber will lead the United States delegation in coordination with the Office of the United States Trade Representative. Environment Ministers or vice ministers representing other Parties to the CAFTA-DR EAC (the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) will also participate in the one-day meeting.

At the meeting, CAFTA-DR Parties will reaffirm their strong commitment to work together to preserve and protect the environment through implementation of the CAFTA-DR Environment Chapter and the Environmental Cooperation Agreement. The Council will also host a public session to discuss progress made to implement Environment Chapter obligations and the results of environmental cooperation activities.

Since 2004, the United States has dedicated more than $85 million to support environmental cooperation with CAFTA-DR countries. Through this cooperation, CAFTA-DR governments are working to strengthen implementation and enforcement of environmental laws, protect biodiversity, increase market-based conservation, and improve private sector environmental performance. Results of this work include: improving or adopting over 170 laws and regulations addressing issues such as waste water, air pollution, and solid waste; bringing more than 1.3 million hectares of land under improved natural resource management; and, training over 56,000 people in enforcement and implementation of environmental laws, public participation in development of environmental regulation, cleaner production, natural resource management, and biodiversity conservation.

The success of CAFTA-DR environmental cooperation and the continued commitment of CAFTA-DR Parties to work together on environmental issues demonstrate how increased trade and stronger environmental protection are mutually supportive. We strive to level the playing field for U.S. businesses by working toward similar environmental rules in Parties’ countries.

For more information, please contact GambleKJ@state.gov, or visit http://www.caftadr-environment.org/index.htm and http://www.state.gov/e/oes/eqt/trade/caftadr/index.htm.

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State Department Call With U.S. Buyers in Bangladesh Ready-Made Garment Sector

Today the State Department, the Department of Labor and the Office of the U.S. Trade Representative convened a conference call with U.S. buyers in Bangladesh’s garment industry to discuss U.S. Government engagement to improve workers’ rights and working conditions in Bangladesh, and to review how the private sector can assist in these vital ongoing efforts. Assistant Secretary of State for South and Central Asian Affairs Robert O. Blake, Jr. and Special Representative for International Labor Affairs Barbara Shailor represented the State Department.

Assistant Secretary Blake and Special Representative Shailor noted that the tragedy at Rana Plaza once again underscores the urgent need for government, owners, buyers, and labor organizations to work together to improve labor safety and the lives of working people in Bangladesh. Both the United States and Bangladesh have a shared interest in ensuring that the growth of Bangladesh’s export sector does not come at the expense of safe and healthy working conditions or fundamental labor rights.

The State Department strongly urged U.S. buyers to coordinate efforts with each other and with the Government of Bangladesh and the Bangladesh Garment Manufacturers & Exporters Association (BGMEA), as well as civil society and labor groups, on factory safety and fire initiatives, including helping pay for independent safety and fire inspectors. They encouraged the buyers to communicate their concerns about labor conditions to the BGMEA and the Bangladeshi Government, and to urge immediate passage of the labor law amendments to lay the basis for the establishment of an International Labor Organization and International Finance Corporation Better Work Program.

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U.S.-Liberia Partnership Dialogue Closing Remarks

I also as you did want to recognize the hard work of the U.S. Institute of Peace staff, of course its leader Congressman Jim Marshall, our Liberian colleagues, and my U.S. Government colleagues, including those in the State Department’s Africa Bureau, in making the inaugural session such a success.

Throughout today, as I understand from talking briefly to the Minister and with our staff, we have advanced the U.S.-Liberia bilateral relationship -- a relationship already deeply rooted not only in our historical ties, but our shared commitment to democracy, human rights, and economic advancement.

This joint statement that Minister Ngafuan and I just signed affirms our commitment to work together to address the challenges Liberia currently faces in its agriculture and energy sectors, and acknowledges their importance to Liberia’s overall economic development.

We have committed to hold the next session of the U.S.-Liberia Partnership Dialogue in Monrovia, Liberia within the next year. At that session we plan to convene the first meeting of the Human Development Working Group.

The high-level participation from both our governments demonstrates the significance of the U.S.-Liberia Partnership Dialogue to our bilateral relationship, and the importance of the sectors that were discussed today in the working groups.

In the Agriculture and Food Security Working Group, for example, colleagues discussed policy and institutional constraints to private sector-led development of Liberia’s agriculture sector, and ways to address these constraints. Together, we explored opportunities to expand bilateral cooperation to increase food security and nutrition, especially under the Feed the Future Initiative.

The Energy and Power Infrastructure Working Group reviewed Liberia’s efforts to meet its growing power generation, transmission and distribution requirements. We will continue to collaborate on how we can encourage private sector investment in Liberia’s energy sector by improving regulatory policies and to accelerate the development of a well-governed and inclusive Liberian energy sector.

Though the official government-to-government portion of the U.S.-Liberia Partnership Dialogue has come to an end, I am delighted that the Foreign Minister and the rest of the Liberian delegation will participate in a public outreach event that will discuss how the Government of Liberia and its partners plan to transform Liberia into a middle-income country through an inclusive and equitable economic development strategy. This event, open to the press and public, will further highlight the achievement made today and will allow private sector, civil society, Diaspora, and others to engage with the Government of Liberia on its plan for Liberia’s economic future. We all have a role to play in Liberia’s progress toward a growing and sustainable economy. It is clear to me that this is led by the Liberians themselves, which is as it should be, with all the rest of us in support of your vision and your destiny.

Liberia’s future is full of promise and great opportunities. Thank you all for a very successful inaugural session of the U.S.-Liberia Partnership Dialogue and for your friendship with the United States.

We look forward very much, I in particular, to meeting again in Monrovia. I commend to you Acting Assistant Secretary Yamamoto, who is going to take my place in any question and answer that follow. I greatly appreciate all the work done today.

Thank you very much.

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