Under Secretary Robert D. Hormats for Economic, Energy and Agricultural Affairs today said Los Angeles is one of the most critical links between America and the global economy.
At the affair for U.S. Economic Policy and the Asia Pacific, Mr. Hormats in LA, Mr. Hormats said Los Angeles mayor understands the importance of that link, and who works hard to cultivate it, particularly with respect to Asia.
“I’ve read with interest recent reports by the Los Angeles Economic Development Council, which demonstrate the dimensions of this region’s connections with the countries of the Pacific Rim.” – Mr. Hormats
He reported that countries in the Asia-Pacific region were the destination for nearly two-thirds of L.A.’s $105.3 billion worth of exports in 2010.
“Your ports and airports handle approximately 40% of two-way trade between the United States and China;$190 billion in trade passed through them to and from China in 2010.” – Mr. Hormats
He cited that Southern California’s two-way trade with Japan increased by 26% to $53 billion in 2010. And trade with South Korea increased an incredible 37 percent to $24 billion.
“Los Angeles- and indeed all of California- with its innovative spirit, entrepreneurial people, and openness to the global economy also represent the keys to American competitiveness in a changing and more interconnected global economy.” – Mr. Hormats
Mr. Hormats stressed that the world of the early 21st century is increasingly linked by new technologies, rapid increases in international trade and financial flows, global supply chain networks, a diffusion of innovative centers around the world, and the rapid proliferation of competitive companies. He said it poses both tremendous opportunities for trade and investment – and job creation – as well as new challenges for America.
“In Asia alone, hundreds of millions of people have been lifted out of poverty. They are now part of a rising middle class and form a new generation of engineers, scientists, entrepreneurs and innovators. They can and will be major competitors, but they can also be important consumers for American goods and services – from computers to movies to agricultural products.” – Mr. Hormats
He pointed out that young people in greater numbers than ever before are now connecting to the global community, and demanding their own opportunities and freedom. He said this chnage is most vividly seen today in the Middle East.
“What we see when we look at the sweep of events over the last couple of decades is that power in the global system is shifting from West to East, from military to economic instruments, and from countries which are highly indebted financially to those with more available funds.” – Mr. Hormats
He underscored that it also necessary to reinforce the global economic order on which US prosperity and opportunity increasingly rests.