Obama launching program to promote rural exports

Fri., Feb. 7, 2014

Nedra Pickler Associated Press

Trade gap widens

WASHINGTON – The U.S. trade deficit widened in December after hitting a four-year low in November. But for 2013, the gap reached its lowest point since 2009 as exports rose to a record.

Analysts said the larger-than-expected trade deficit for December would likely reduce estimates of growth in the October-December quarter. The government had initially estimated fourth-quarter growth at a 3.2 percent annual rate. But economists at Barclays say the bigger December gap could reduce that estimate to a 2.8 percent rate.

The trade deficit rose to $38.7 billion in December, a 12 percent increase over November, the Commerce Department said Thursday. Exports slipped 1.8 percent to $191.3 billion. Imports rose 0.3 percent to $230 billion.

For all of 2013, the deficit dropped 11.8 percent to $471.5 billion. That was the lowest level since the Great Recession caused the deficit to shrink in 2009.

U.S. exports rose 2.8 percent as an improving global economy benefited American manufacturers. An energy production boom also lifted U.S. petroleum exports to a record. Imports dipped 0.1 percent.

WASHINGTON – President Barack Obama is launching a new program to help American farmers and rural businesses boost their exports.

Obama plans to announce the “Made in Rural America” initiative today at Michigan State University. The president is visiting the school to sign into law a sweeping farm bill that sets policy for agricultural programs and food stamps.

He’s coupling the signing of the nearly $1 billion-a-year legislation with the announcement of the new administration program to connect rural businesses with federal resources that can help sell their products and services abroad. The program’s creation comes as U.S. farmers are sending more products overseas – a record $140.9 billion in the last fiscal year – but U.S. officials say additional opportunities exist overseas for farmers and other rural business owners.

According to a draft of his plan obtained by the Associated Press, Obama plans to direct federal agencies to take several steps in the next nine months toward that goal. They include hosting five regional forums for rural businesses, training Agriculture Department staff in all 50 states to advise on export opportunities, and putting on a national conference to highlight successful projects.

The farm bill was a rare work of compromise in a divided Congress in a midterm election year. Obama’s trip to Michigan was a reward for Senate Agriculture Chairwoman Debbie Stabenow, D-Mich., who helped broker a hard-fought compromise to pass the bill into law after years of setbacks. Michigan State, a leading agricultural research school, is Stabenow’s alma mater.

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