By Congressman Pete Gallego —
Congressman Pete P. Gallego applauded Senator Brian Schatz (D-HI) for introducing the American Export Promotion Act in the U.S. Senate. Congressman Gallego had earlier introduced this legislation (HR1420) in the U.S. House of Representatives. HR 1420 supports the Market Development Cooperator Program, which boosts exports, spurs economic growth and increases jobs by supporting American mid-small businesses in the manufacturing sector.
“I thank Senator Schatz for introducing this export-promoting, job-creating bill in the Senate. Bicameral work in Congress is key to ensuring that Americans' needs are met,” said Congressman Gallego. “Having a comprehensive jobs plan – like the Democratic “Make It In America” initiative in Congress – is the first step towards tackling our nation's challenges. The idea is simple â€” getting Americans back to work starts with supporting small businesses and increasing their exports. Hand-in-hand we can improve our local and national economies using what works in a bicameral manner.”
“Boosting American exports and helping small businesses access global markets will create good new jobs, help families put food on the table, and grow our economy,” said Senator Brian Schatz. “I'm proud to have worked with Congressman Pete Gallego to introduce the American Export Promotion Act as part of the â€˜Make It In America' initiative and will fight for it to become law.”
Background on Gallego House bill:
The bill invests $4 million to the The Market Development Cooperator Program (MDCP). An MDCP award establishes a partnership between International Trade Administration and non-profit industry groups (such as trade associations and local chambers of commerce) to work together with small businesses in manufacturing to increase exports.
For every $1 of awards made from the MDCP, $258 is generated in exports. The bill includes a measure that individual award limits are increased to $500,000 â€” allowing the partnerships and small businesses to invest more in exporting. The bill requires industry groups pledge to pay a minimum of two-thirds of the project cost and to sustain the project after the MDCP award period ends.
The bill requires the Secretary of Commerce to give preference to assist small and medium sized businesses in the United States, as well as activities that create or sustain the greatest number of American jobs. This is crucial when awarding funding that the agency supports small business and job creation.Background on Schatz Senate companion bill:
The Senate companion further expands the MDCP by increasing the funding for the program to $8 million and requiring industry groups to pledge half of the project cost in order to reach to even more small businesses. In addition to the House bill's funding priorities, the Senate bill aims to bring the program's funding priorities in line with U.S. trade advantages by allowing the Secretary to also prioritize projects that increase exports in services or exports to the Asia and Pacific region.