Director: USTDA Builds Overseas Relationships That Help U.S. Businesses

Federal agencies like the U.S. Trade and Development Agency help American companies, including those in Arkansas, create business partnerships and help developing overseas economies grow, the director of the U.S. Trade and Development Agency (USTDA) and the former director of the Arkansas Economic Development Commission (AEDC) said Thursday.

Leocadia Zak, USTDA director, discussed her agency’s efforts during a sit-down discussion with Grant Tennille, former AEDC director, at the Clinton School of Public Service as part of the school’s “Speaker Series.”

Zak said the agency’s mission is economic development in developing and middle-income countries with a focus on encouraging U.S. exports in areas where the U.S. is strong, particularly the energy, transportation and telecommunications sectors.

Building relationships is a key part of that. The agency sponsors reverse trade missions where partners are bought to the United States to meet with U.S. businesses and provides grant funding for overseas infrastructure projects with the goal of providing markets for American businesses.

Zak said small businesses are involved in export markets, often without realizing it, because the products they sell to larger companies are sold overseas. Asked by Tennille where some of the biggest opportunities are, she mentioned a number of countries, including a transportation infrastructure construction program in Mexico for which the USTDA has developed a resource guide.

Zak said the world is safer when poorer countries develop and make connections with the United States. “I truly believe that there are no better models and peacemakers than the American people,” she said.

Zak said the USDTA works with other government agencies in its trade development efforts. Among the federal government’s programs is Power Africa, an Obama administration initiative meant to significantly increase electricity offerings on that continent. Zak said that Nigeria will be spending $500 million on its electrical grid, hopefully using American products. Tennille pointed out that two companies spun out of the University of Arkansas, Silicon Solar Solutions and Picasolar, could benefit from the effort, as could Big River Steel, the steel-producing superproject slated for Northeast Arkansas.

Zak said the Export-Import Bank is “an essential player” for U.S. overseas businesses, adding that China has provided as much funding in two years as the Bank has provided in 80. Tennille said that the Big River Steel plant exists because of leveraged investments from the German version of that bank.