Kerry at SelectUSA Investment Summit
24 March 2015
U.S. DEPARTMENT OF STATE
Office of the Spokesperson
Washington, D.C.
March 24, 2015
Secretary of State John Kerry
At the SelectUSA Investment Summit
SECRETARY KERRY: Thank you. Well, good afternoon. Thank you very much, Vinai. Appreciate the
kind introduction. More importantly, I want to thank you for doing such a terrific job at SelectUSA.
Thank you all for being here. I’m honored to be the closing keynote speaker, I gather, which
means that I’m the guy who talks when everything’s been said – but not by everyone. So I’m here
to add a little reinforcement to some very important messages, and I’m really delighted to be here
with you.
I want to begin by thanking our absolutely extraordinary Secretary of Commerce – she is a delight
to work with. Penny Pritzker and her team are making SelectUSA a great program. Penny, thank
you. (Applause.) And I also want to thank the more than 2,600 people, I gather, from nearly 80
countries who’ve traveled here to be part of this summit. And you represent investors from all
over the world, economic development organizations from every corner of the United States, and
officials from every level of government, who have come here to facilitate greater investment in
the United States. And your presence, I think, is evidence of the value of what we want to
accomplish and of the very fulsome possibilities, the rich possibilities that we’re looking at and that
we hope this summit will set in motion.
I’m particularly grateful to the dozens of U.S. ambassadors and chiefs of mission at posts all
across the globe who’ve not only helped to bring so many international business people here today
but who are in attendance themselves. I won’t embarrass them by asking them to stand, but that
also could be an attendance check here. (Laughter.) But I will thank them profusely for making the
effort. I really am grateful for that.
We have more than 50 chiefs of mission who are part of this summit, and that is a very significant
deal. It’s leading delegations – each of them are leading delegations from the countries to which
they’re posted. And they – all of them, believe me – understand that in today’s world, foreign
policy and economic policy are not only linked, but they’re actually one and the same. And that’s
why business and economics, believe me, are top priorities at every single one of our posts. We
have 275 embassies, consulates around the world, and at every single one of them, this is a top
priority. And I think the sheer number of organizations and businesses that are represented at this
summit are an indication of that fact.
Now, some might debate it – I don’t – I think the United States of America, particularly at this
moment of time is without doubt one of the best places in the world to invest, if not the best
place. And I say that not with an ounce of arrogance, with some humility because there’s a certain
– there’s a responsibility that falls in the hands of our entrepreneurs. I don’t stand here as a
principal in the government and suggest that we did it all. We didn’t. It’s a combination. You have
to create the framework, the structure, and then people have to come along with good ideas, good
businesses, and they have to be free to be able to go out and make those businesses work.
But I am proud of what we have done since the moment of the economic crisis when I was in the
United States Senate. I could never forget the Treasury secretary coming up pale and literally
shaking, quite agitated, as he told us that the financial system of the United States of America was
in jeopardy. And we have made an extraordinary return from that moment, and I believe President
Obama, who came in at the transition of 2008 into 2009, made the right decisions at the right
time that literally pulled this country back from the brink of certainly a huge recession, if not
depression. And he deserves credit for the choices that he made. (Applause.)
Now we’ve – so much has happened, you kind of forget the tension of those moments and the
reality of what was happening to businesses and to value in the marketplace. But I think you’ve
heard a lot over the course of this week about the realities on the ground here in the United
States. But I just want to reiterate a couple things, few things. First of all, the United States is the
world’s largest market still. And it is the world’s richest market still. And we believe we can boast
some of the world’s, if not the world’s, most productive workers, some of the world’s finest
universities, and certainly some of its most innovative entrepreneurs, and the strongest intellectual
property protections that you will find anywhere. And in many ways, there is no better time to
invest than now. We’re in the middle of the longest streak of private sector job growth on record:
5 straight years, 60 consecutive months, 12 million new jobs. And there is no question that the
growth that we’re experiencing is directly tied to the creativity of United States business leaders
and the productivity of American workers.
But it’s also thanks to the important choices that were made by the President from day one.
Actually, it began even in the transition, as President Bush was transitioning out, that President
Bush deferred to the President and in communications made sure that steps that were taken were
exactly what he would have wanted. And so over the past six years, the President has been laser
focused on supporting job growth in this country by giving innovators, entrepreneurs, and
hardworking Americans the precise tools that they need in order to be able to flourish.
Now when everybody was talking about the death of manufacturing in America – I know you
remember that, not so long ago – the Administration, against the advice of many and against the
votes of many, was doing all it could to make sure we saved that sector or helped that sector
where it needed it. And today it is not only growing, it is growing at a much faster pace than the
rest of the economy.
We’ve also focused on enhancing education and making sure that more American workers get the
skills and the training that they need in order to effectively compete in today’s workforce.
We have focused on reducing health care costs and increasing our energy security, even as we
take unprecedented steps to combat the global threat of climate change, which by the way is one
of the most significant business opportunities the world has ever seen. So today we are number
one in oil and gas production, but we’re also number one in wind power, and we’re producing 10
times as much solar energy as we did just 6 years ago. And I can guarantee you that, with the
commitment of the President and the State Department and others to the negotiations that are
going to finalize in Paris in December of this year, where the world will come together to try to put
in place a climate change agreement, we will, I hope, send a message to the marketplace for
years to come about the possibilities of the energy market and job creation that will come out of it.
And even as we have taken all of the steps I’ve just described, we’ve also cut our deficits as a
share of our economy by roughly two-thirds. So we are getting our fiscal house in order.
Now last week, the President spoke in Cleveland about his economic vision. He called it “middle
class economics.” It’s a pretty basic approach. It replaces the idea of “trickle down” with
“everybody up.” You can’t build a house that is all roof; it just doesn’t work. You have to grow an
economy through tax and spending policies that benefit the broad cross-section of your citizenry,
not just those who already have it made. You have to make it easier for the top, the bottom, and
the middle all at once to do well at the same time. That’s what characterized the greatest period of
wealth creation, next to the early part of the 20th century, that’s ever taken place in our country,
the 1990s, when a $1 trillion market with 1 billion users drove every single quintile of American
taxpayer up in their income.
The energy market I just referred to is a $6 trillion market with 4 to 5 billion users today, growing
to some 9 billion users over the course of the next 20, 30, 40 years. And it is the biggest single
opportunity for transformation in our society by bringing power to places that don’t have it, by
providing clean, alternative, renewable energy, by totally shifting our economy into lower cost,
greater dependency, greater security, better healthcare, more jobs – an extraordinary opportunity.
And as President Obama said in Cleveland – I think this applies not just to Americans – but he said
Americans do better when everyone grows together.
Now in today’s interconnected world, my friends, that concept is actually also true on a global
scale. When one nation’s economy is facing trouble – big nations, larger more importantly – then
many others feel the pain as well. America slows down, others slow down. China slows down,
others slows own. Europe slows down, others slow down. We know this.
Alternatively, on the other side of that coin, prosperity is contagious. Economies around the world
are increasingly and inextricably linked. Every one of you know it. I’m looking at a couple of
smartphones, mobile devices that are flashing away right now. Everybody’s in touch with
everybody everywhere all the time. That’s part of what’s driving some of the change in the Middle
East and in other parts of the world. And we do better, here in the United States and around the
world, when everybody has the opportunity to take the opportunity they see on their mobile
device and turn it into their own life. That’s the difference.
A nation’s interests and well-being today in today’s world are advanced not just by troops sent to
deploy and protect a nation or your interests, not just by diplomats, but by entrepreneurs,
executives – by the businesses they build, the workers they hire, the students that they train, and
the shared prosperity that they create at home and abroad. Now that is why economic policy is
foreign policy. (Applause.)
Economic policy and foreign policy are two sides of the same coin. I’ve said before; I say it all the
time. Because frankly, I don’t think it’s said enough and it’s not put into practice as often as it
ought to be as we fight for our budget on Capitol Hill. The State Department, the entire diplomacy,
everything we do – and USAID and the State Department is 1 percent of the entire budget of the
United States, one penny on the dollar. And for that, all the return of our ability of our embassies
to marry people with jobs and businesses and so forth is extraordinary. As Secretary of State, I
have made it clear to each and every one of the diplomats in the State Department that no matter
what else they want to consider themselves, they are also economic officers. That’s how we have
to think.
And we know that when American businesses invest abroad, we benefit here in the United States
in the same way that your home countries benefit from investments on our shores. It’s an export
world today. You can’t survive almost without it. You can’t just sell to yourself; 95 percent of the
world’s market is outside the United States. We know that. We know that U.S. business leaders
are some of the finest ambassadors that we have, sharing their practices in transparency,
innovation, technology, social responsibility with every country in which they invest. They’re
bringing something to the table, and we’re proud of that. And it’s important that we make it easier
for foreign business leaders to be able to do the same.
We know that two businesses in two different countries on two different continents have the ability
to be able to forge strong bonds – bonds that ultimately serve to enhance the relationship between
both businesses’ home countries, and bonds that actually no two governments could quite create
in the same way.
We also know that promoting growth in places like the Middle East and North Africa helps to
address fundamental concerns about corruption, failed or failing states, failing governance – ills
that we know can lead to conflict, instability, and violent extremism. None of us should dare to
leave a vacuum for nihilism and extremism of one kind or another to fill.
We’ve also learned that investment, innovation, and trade are not just the principal engines of a
strong economy; they are the principal engines of a strong society.
And we all do better when we grow together. At the State Department and throughout the Obama
Administration, we are working hard to make sure that is exactly what happens. We’re taking a
number of steps to facilitate more trade and investment in both directions, build shared prosperity
for the United States and for our allies and partners abroad.
To start with, we’re doing what we can to make it as easy as possible for foreign businesses – like
those of you represented here at the summit – to be able to invest in our shores.
As you all know, that is exactly why President Obama created SelectUSA. Now, I know over the
course of these days you have heard the success stories over the past few days, and you’ve heard
from companies from Switzerland, Canada, Indonesia, Japan, India – almost every corner of the
globe, almost every sector of the economy – working with SelectUSA to make the smart choice to
expand and open up shop in the United States.
Now, the State Department obviously has a unique role to play in that process. We have expert
investment teams at every one of our embassies, led by capable ambassadors and drawing on the
talent of our dedicated embassy staff. And I think these folks are as tuned in and as capable as
any people I’ve met in the combined art of diplomacy and business anywhere in the world. These
teams are the on the ground and they are a ground connection to many of your businesses – the
point of entry that the SelectUSA network of investors, government partners, business
development organizations – to assist you in planning your investment.
I’ll give you just a couple of examples. Last month, our Ambassador to Switzerland Suzi LeVine
brought a 10-person Swiss delegation to the White House, where they together announced plans
to invest over $3 billion in the United States in the coming year. Many of those same companies,
including Nestle, Buhler, Alevo, all represented here today, also made commitments to expand
core components of their successful Swiss apprenticeship programs into their U.S. facilities.
In Ottawa, Ambassador Bruce Heyman and his team recently hosted 60 aspiring entrepreneurs
from Canada, from all across Canada, to join with seasoned business mentors to collaborate,
learn, and share ideas and skills. And by helping Canada’s budding entrepreneurs learn the basics
of founding and launching a business, our mission to Canada is helping to create strong, binational
network of future business people and innovators – and driving economic development on both
sides of the border.
Now, obviously, we are deeply committed to bringing more international business to America. But
I want you to know we’re also dedicated to helping American firms invest in your countries at the
same time. From the ambassadors on down, our embassies are working with companies every day
to find new opportunities abroad, because this is, obviously, a global marketplace and it’s a
voracious one. It’s tough, tough to be in business today. You’ve got to stay on your toes and be on
the cutting edge and make decisions fast and without looking back, and move into the future.
And in recent years, we’ve done exactly that. We’ve worked together to bring about billions of
dollars in business deals, including the largest single commercial aircraft sale in Boeing’s history to
Indonesia Lion Air. Our then-Ambassador Scot Marciel played a critical role in helping Boeing
secure that deal, which was ultimately worth almost $23 billion.
Now, one thing I have learned – both during my time in the United States Senate, where I served
as chairman of the Small Business Committee and, as Vinai said, on the Finance Committee, and
now as Secretary of State, meeting with entrepreneurs all over the world – one thing I’ve learned:
Capital chases confidence as well as opportunity. And as we’ve worked hard to enhance the
confidence that foreign investors can have in our own marketplaces, we’ve also spent a lot of time
working with our partners in governments overseas to help them boost the confidence investors
can have in their nations.
That’s why just a week or so ago, 10 days ago, I was in Egypt attending the Egypt Economic
Development Conference to underscore our support for international investment in that country’s
economy, while working hand in hand with Egyptian leaders to strengthen intellectual property
protections; improve accountability, transparency within the country’s business environment. And
guess what? In Egypt, President al-Sisi announced a one-stop shop new capital that they’re going
to build in Cairo for all of the government operations with enormous opportunity for companies
around the world. GE, Coca-Cola – Coca-Cola announced a $500 million investment. We have a
total of about 2.2 billion of new investment from the United States in Egypt alone. And that is
critical when we don’t have the latitude that we once had from Congress and in our budget to be
able to leverage some of those investments ourselves. That’s why foreign policy is economic policy
and vice versa.
So we are working hard to open up trade and investment not just in the United States, but
everywhere – Power Africa, countless other efforts, the efforts in Pakistan and Afghanistan. We
just met with President Ghani. That’s why I just came over here from that meeting. And the
number one thing that we can do to expand trade and investment, the number one thing that we
can do to drive global growth and prosperity is to finalize the free trade agreements and the
bilateral investment treaties that we are currently working on. The Trans-Pacific Partnership and
the Transatlantic Trade and Investment Partnership are two of the three biggest free trade
agreements ever to be contemplated. And together, they would be an unprecedented step towards
a more integrated investment regime that would advance our shared prosperity agenda.
Now I know there are some who don’t believe the hype when it comes to free trade. When I was in
the Senate, I think I voted for every single free trade agreement, and I believe there were some
hiccups in some of them. And the fact is, despite the opposition that still exists, I know the facts
show that every time we have embraced the reality that the world is only becoming more
interconnected, every time we have embraced the openness, every time we have moved forward
with one of these agreements, we have done better in this country. And I’m not saying there isn’t
a disruption that takes place, that some jobs there isn’t any dislocation, which is why we have
trade adjustment assistance and other efforts. But every time we’ve opened up international trade
and investment, we have seen a massive infusion of new energy, creativity, innovation, and jobs,
and Americans have done better.
Now today, the United States – (applause) – today, the United States has free trade agreements
with 20 countries around the world, markets that together reach about 700 million people and $7
trillion in GDP. These agreements support hundreds of thousands of good-paying American jobs in
the most competitive sectors of growth of our global economy. They have presented American
businesses with extensive access to foreign markets, which we think is critical, and they’ve opened
our doors and our consumer dollars to foreign firms. The bottom line is these agreements drive the
American economy and they drive foreign economies, and that moves all of us together forward at
the same time.
The same benefits that we have seen through these agreements await us on completion of the TPP
and the TTIP. I know that every one of you is aware of the enormous difference that these
agreements would make. Between the two, we’re talking about stronger regional integration, more
economic stability in countries that make up two thirds of global GDP, and they are consistent –
these agreements – with our shared economic interests and our shared strategic interests, and
they are rooted in our common values of how you treat people and what you do to create
opportunity. Also, may I add, they will have the strongest combination of both environment and
labor standards within the agreements, and countries will sign on to them.
Moreover, we know that fairness and opportunity in a globalized world requires maintaining a level
playing field. It requires a rule-based order. And the alternative is letting the rules of the 21st
century be sabotaged by falling standards, by the race to the bottom. If we want to end on the
mountaintop instead of ending in the deep of the valley, then we have to reject that race to the
bottom and we have to be prepared to try to raise the standards, which is what we are fighting for
today. We need to make this happen, and I just say to all of you assembled here, we need your
help. We can’t do it without you. We need you to be advocating for these landmark agreements
wherever and whenever you can. If in the course of being here in the next day or two you happen
to be meeting with senators and congressmen, talk to them about it. Your voices are critical to the
discussion and we need to hear them loudly and clearly.
Ultimately, we will all benefit from the elimination of non-tariff trade barriers around the world.
Better integration of markets in places like the Middle East and Africa into global supply chains
could unleash tremendous economic potential. And agreements that establish the right rules of the
road are, in the end, the best way to make all of these things happen. The best way for any
country to jumpstart its economy is not through a new oil discovery or the installation of a deep
water port. It’s through the consistent, vigorous application of the rule of law. If investors are
going to risk their capital, they want to know that they’re going to be able to enforce contracts and
not be undercut by companies that violate fair labor and even environmental standards or the
Foreign Corrupt Practices Act. And at the end of the day, the best ideas cannot and should not be
contained by borders. I know you’ve had a busy couple of days, and I hope they have indeed been
filled with a lot of productive discussions. But all good things, including this speech, have to come
to an end. (Laughter.)
So here is my final pitch to you. You’re pretty well aware – you’ve been bombarded by all of the
important reasons to select the USA. Some businesses, like Switzerland’s Novartis, choose to
invest here because of our universities and our vast scientific and medical talent. Others, like
Austria’s Voestalpine – they picked the United States because of the low-cost, abundant energy
supply that we now have. Whatever the reason, whatever makes the most business sense to you,
you can be confident in the fact that when you select the USA, you are choosing a workforce with
some of the world’s most reliable and most productive workers. You are embracing an investment
climate that encourages innovation and entrepreneurship. Most importantly, you are selecting a
partner that is committed to helping you to succeed and knows that we all do better when
everyone grows together.
For that reason, your investment here is not just an investment in the United States. It’s an
investment in a more prosperous, more secure world. And that has been proven in place after
place where millions of young people don’t have the education, want the opportunity, can see what
the world has, and see their aspirations left in a square or sometimes, unfortunately, in a bombedout building or in some other form of violence. That’s the choice here. This is a new day with a
new opportunity for business and government to join together in an effort to bring to all of our
people in every part of the world the fulfillment of the aspirations which everybody is in touch with
and shares today with everybody else. We very much look forward to doing business with you.
My privilege now to welcome back Penny Pritzker, Secretary Pritzker of the Commerce Department
for a few final thoughts. Thank you. (Applause.)
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