With the 2000s behind us, we are in a new era in terms of our economy and our national security. We have to look outside U.S. borders to foster growth, while maintaining security across the supply chain. With many fresh faces in Congress, I anticipate new trade regulations and strengthened security initiatives, along with increased enforcement to accomplish these goals.
2011 will bring increased emphasis on exports in order to boost the U.S. economy. Look for the National Export Initiative, implemented in 2010, to gain traction this year as more exporters start to realize its benefits. Companies will also look to foreign trade zones to compensate for the increasing costs of manufacturing overseas, as these specially designated areas outside U.S. gateways provide an excellent opportunity to reduce or even eliminate duty payments and minimize total transactional costs.
On the security front, economic stimulus-type initiatives, along with the recent threats on air cargo shipments, will result in increasing efforts to detect and prevent terrorist activity. U.S. regulatory agencies will look in particular at new ways companies could unknowingly support terrorist organizations. For example, the health care industry and the university system will be under demands to comply with strict export and denied-party screening regulations.
That is not to say traditional exporters are safe, however, as agencies maintain a close eye on where and with whom growing exporters are doing business. With these governmental incentives, exporters operating illegally will not be tolerated, as their actions would mar the positive economic results from programs designed to help struggling businesses and the U.S. economy as a whole.