A difficult world economic environment posed a challenge for the management of trade relations.  U.S. trade negotiators were called upon to manage serious sectoral problems in such areas as steel, and helped to assure that U.S. chemical exports will have continued access to the European market.

Close consultations with the private sector in the United States have enabled U.S. trade negotiators to pinpoint obstacles to U.S. trade in services, and to build a basis for future negotiations.  Services have been an increasingly important source of export earnings for the United States, and the United States must assure continued and increased access to foreign markets.

The trade position of the United States has improved.  But vigorous efforts are needed in a number of areas to assure continued market access for U.S. exports, particularly agricultural and high technology products, in which the United States continues to have a strong competitive edge.  Continued efforts are also needed to remove many domestic disincentives, which now hamper U.S. export growth.  And we must ensure that countries do not manipulate investment, or impose investment performance requirements which distort trade and cost us jobs in this country.

In short, we must continue to seek free—­but fair—­trade.  That is the policy my Administration has pursued from the beginning, even in areas where foreign competition has clearly affected our domestic industry.  In the steel industry, for instance, we have put Trigger Price Mechanism into place to help prevent the dumping of steel.  That action has strengthened the domestic steel industry.  In the automobile industry, we have worked—­ without resort to import quotas—­to strengthen the industry’s ability to modernize and compete effectively.

SMALL BUSINESS

I have often said that there is nothing small about small business in America.  These firms account for nearly one-half our gross national product; over half of new technology; and much more than half of the jobs created by industry.

Because this sector of the economy is the very lifeblood of our National economy, we have done much together to improve the competitive climate for smaller firms.  These concerted efforts have been an integral part of my program to revitalize the economy.

They include my campaign to shrink substantially the cash and time consuming red tape burden imposed on business.  They include my personally-directed policy of ambitiously increasing the Federal contracting dollars going to small firms, especially those owned by women and minorities.  And they include my proposals to reinvigorate existing small businesses and assist the creation of new ones through tax reform; financing assistance; market expansion; and support of product innovation.