Come Back, Yankee Traders

The White House ponders some stimulants for sluggish exports

Not long ago a Belgian businessman wanted the European marketing rights for a new U.S. machine tool. After several of his letters went unanswered, he flew out to see the manufacturer, who told him: "We don't export --it's too much trouble." Unlike the aggressive, go-anywhere Yankee traders of old, modern American businessmen have long had at their doorstep the richest market on earth and felt far less pressure than their foreign counterparts to seek exports. But that could be changing.

The Carter Administration has appointed an interagency task force headed by Commerce Secretary Juanita Kreps to put together a package of export promotion measures that should be on the President's desk next week. It's about time. Last year the U.S. had a $27 billion trade deficit, swelled by a bill of almost $45 billion for oil imports. In this year's first four months the gap was $12.5 billion, vs. $7.6 billion for the same period last year. These imbalances have shrunk the value of the dollar overseas, fed inflation at home, cost jobs and raised demands for self-defeating protectionist legislation.

The U.S. has long been the world's leading exporter, but its $121 billion in exports last year was only 6.3% of the gross national product. Exports from the much smaller economy of West Germany totaled $118 billion, or more than 27% of its G.N.P. Japan shipped out $81 billion worth of goods, or 14% of its G.N.P.

The task force is considering a number of stimulants:

> Liberalizing Export-Import Bank loans to finance not only foreign buyers of American goods but export-related plant and equipment spending in the U.S

> Providing new tax incentives for exporters, including credits for firms that set up overseas sales offices, and faster write-offs on export-oriented investments.

> Intensifying Government support for business research and development of new products for export, in such areas as telecommunications, computers and electronics.

> Creating through domestic and overseas Government offices a worldwide computerized information network to put American producers in touch with prospective foreign buyers and vice versa.

At the same time, Eximbank has been showing new signs of life under President John L. Moore Jr., 48, an Atlanta lawyer who was appointed in 1977. So far this fiscal year, the bank approved direct loans to foreign buyers for $2.1 billion in exports, up from $423 million in the equivalent period a year ago. Last week the bank announced its biggest deal yet: a $732 million credit for the Korea Electric Co. to buy two U.S. nuclear power stations. The project, which will ultimately cost $2.2 billion, will support 56,600 jobs at Westinghouse, Bechtel and more than 1,000 subcontractors and suppliers. The Administration has asked for--and Congress is expected to approve--an increase in Eximbank's lending authority from $25 billion to $40 billion over the next five years.

Businessmen have been pushing for the Government to re-examine its proposal for ending a major incentive to exporters: the domestic international sales corporations, or DISCS, which enable companies to defer taxes on part of their profits from exports. The White House has contended that DISCS provide an unnecessary and unfair benefit for multinational giants, but there is little chance that Congress will eliminate discs. Corporations would also like the Government to rule that U.S. firms, without fear of antitrust actions, can compete jointly against foreign consortiums for major projects like hydroelectric plants.

Despite the obstacles, resourceful firms --many small and medium sized --continue to test export markets with some success. Just one example: BRK Electronics of Aurora, Ill., has won a substantial share of world sales of smoke detectors by sensibly marketing a competitive product. First, President Fred Conforti went to the Commerce Department to find out whom he should see in Europe. Then he and his sales manager, Gerry Miller, traveled to Italy, France, England and other countries, lining up local distributors. BRK also exhibited its goods at trade shows in Paris and Stockholm. It now sells to 46 countries, and its exports have climbed from $124,000 in 1973 to more than $1 million in this year's first three months.

There could be many more companies like BRK, and the Government can help. Its challenge is convincing business people that it really intends to support a vigorous export program. Many have heard it all before. This time, Administration officials insist, the stakes are too high to allow a continuing lag in U.S. sales to the world.

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