Treasury International Capital Data for March

Washington – The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for March 2019. The next release, which will report on data for April 2019, is scheduled for June 17, 2019.

The sum total in March of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC outflow of $8.1 billion. Of this, net foreign private inflows were $13.6 billion, and net foreign official outflows were $21.7 billion.

Foreign residents decreased their holdings of long-term U.S. securities in March; net sales were $30.3 billion. Net sales by private foreign investors were $20.6 billion, while net sales by foreign official institutions were $9.7 billion.

U.S. residents decreased their holdings of long-term foreign securities, with net sales of $1.9 billion.

Taking into account transactions in both foreign and U.S. securities, net foreign sales of long-term securities were $28.4 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign sales of long-term securities are estimated to have been $40.6 billion in March.

Foreign residents increased their holdings of U.S. Treasury bills by $23.9 billion. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $69.7 billion.

Banks’ own net dollar-denominated liabilities to foreign residents decreased by $37.2 billion.

Remarks by Secretary Wilbur L. Ross at the 2019 AAPI Summit

Introduced by Henry Childs, National Director of the Commerce Department’s Minority Business Development Agency

Thank you, Henry, for that kind introduction, and for your hard work and dedication to the economic development of America’s minority communities.

Welcome, everyone, to the 2019 National AAPI Business Summit. It is great to see such a large turnout.

Yesterday, I had the privilege of joining President Trump in the Oval Office for the signing ceremony of the Executive Order on the Economic Empowerment of Asian Americans and Pacific Islanders. I was especially gratified by the ceremony because in my former private-equity firm, we had Chinese Americans, Korean Americans, Japanese Americans, and Indian Americans in executive positions.

And my first Chief of Staff at Commerce was a Japanese American woman, the first ever for a Cabinet Secretary. So, I personally understand the outstanding qualities of your community.

The Executive Order signed by the President establishes the President’s Advisory Council on Asian Americans and Pacific Islanders, as well as the White House Initiative on A-A-P-I. The Advisory Council will be established here at the Commerce Department, and I look forward to being a co-chair with Elaine Chao, our esteemed Secretary of Transportation.

Our joint intention is to do exactly as the President’s Executive Order states — that is, to develop, monitor, and coordinate all of the government’s efforts to empower the growth of this dynamic segment of our population and business community.

We will develop strategies to increase participation of AAPI enterprises in partnerships between the public and private sectors. We will train a new generation of skilled workers who are in demand throughout every industry sector. And we will conduct an analysis of the United States Pacific Island territories to help them diversify and grow their economies.

Stay tuned: We will soon be issuing a notice seeking private-sector members of this Commission.

Holly Ham, the Executive Director of the White House AAPI Initiative, will be closing our Summit today, and we are honored to have her here.

Today, there are 23.8 million Asian Americans and Pacific Islanders who call the United States their home. The number of AAPI residents will soon eclipse 25 million, and will grow to more than 40 million over the next three decades. Asia accounts for six of the 10 largest countries for American immigrants. Of the 22.2 million Americans of direct Asian descent, 12.6 million — or more than half — were born in their home countries. And, according to the Commerce Department’s Census Bureau — which loves to count everything — Asian Americans drive 6,487,806 vehicles.

Among the Asian Americans in the workforce, 53.5 percent are employed in occupations involving management, business, science and the arts. But only 62.5 percent of Asian Americans of working age are in the workforce; though that number is much higher for Pacific Islanders, whose workforce participation rate is 68.5 percent.

Increasing the workforce participation rate is a challenge we face across our entire economy, and we will be addressing it with the new Commission, as well as with the National Council for the American Worker, which I co-chair with Ivanka Trump.

Of the 1.1 million minority-owned firms with paid employees, more than half, or 560,000 are owned by Asian Americans and Pacific Islanders. This entrepreneurial drive is essential for the continued dynamism and success of American capitalism.

The Commerce Department is helping AAPI-owned companies succeed here in the United States and in every major market abroad. We have Manufacturing Extension Partnership centers assisting manufacturers in every state. We have U.S. Export Assistance Centers located in 106 American cities, staffed by export specialists helping companies penetrate new markets.

The Commerce Department also runs the Foreign Commercial Service, with offices in 119 foreign cities, and 78 countries. In China alone, we have outposts in six major cities, along with one in Hong Kong, employing 120 professionals working with American companies to break down barriers to our products.

These diplomats have one primary task: To increase commercial opportunities in foreign markets for American companies. These markets are home to billions of consumers ready and willing to buy the great products made by AAPI-owned firms.

Please, utilize these resources: mostly they are free, so it’s a pretty good bargain.

But the United States is committed to free, fair, and reciprocal trade and is working to open markets across the globe to your products and services.

The most recent “Foreign Trade Barriers” report, from the Office of the U.S. Trade Representative, lists an astounding 517 pages of trade barriers erected by various countries against American exporters.

However, the Trump Administration has finally, and firmly, told our trading partners that we will no longer allow them brazenly to break the global rules of trade, discourage U.S. imports, and flood our open markets with government-subsidized products. Our trade policy toward China, for example, is not about a clash of civilizations.

It is a matter of fair versus unfair.

It is about addressing mercantilism, and fulfilling the promise President Trump made in his campaign to put America First.

Our trade dispute with China is also about making sure that our companies’ most precious assets — namely, your intellectual property — is not stolen through cyber attacks, forced technology transfers, or state-sponsored industrial espionage.

We do not want to see one American company have to fight the scourge of reverse-engineered, mass-produced counterfeits that are replicas of the real products. We want to ensure that you have affective rights to pursue administrative, civil, and criminal enforcement remedies to protect your IP in foreign markets.

Virtually every important U.S. industry is being targeted: From software, to pharmaceuticals, telecom, electronics, robotics, advanced materials, electric vehicles, processed foods, and every category of consumer goods. Worse yet, fakes and counterfeits are now exploding onto e-commerce marketplaces, making it even harder to enforce our laws and eliminate bad actors. For decades, the U.S. government allowed these illegal foreign trade practices to flourish.

Now, we are confronting them and insisting that they be addressed. And while a period of confrontation is always uncomfortable, in the end, everyone is better off.

China announced yesterday that they were imposing retaliatory duties on the remainder of our exports to them. They had already assessed retaliatory duties on something like 90 percent of their American imports.

But, in view of the fact that we have raised tariffs on more than $500 billion in imports from China, this was a relatively restrained response.

Because we export so little to China compared to what we import from them, the impact of the Chinese tariffs is a very small fraction of 1 percent of our total $18 trillion economy. Rest assured, that our current trade issues with China or other countries in the region will not spill over into attitudes regarding the AAPI community.

While we are addressing these trade practices with China, we are also currently engaged with Japan in developing a trade agreement. And we have concluded successful renegotiations of the Korea Free Trade Agreement and transformed NAFTA into the United States Mexico Canada Agreement.

Our administration has also broadened our strategic engagement with Asia to include the entire Indo-Pacific region.

Last week, I was in New Delhi meeting with Indian Prime Minister Modi, along with his Finance and Commerce Ministers, and with more than 100 U.S. companies wanting to gain a foothold in the massive Indian market place.

We are committed to opening these markets, to breaking down barriers, and insisting on fairness in our trading relations.

And we believe our efforts will pay off.

Through changes in our tax code, and our approach to smarter regulations — along with a dedication to training the next generation of skilled workers — we have put in place the conditions needed to make the United States the best place in the world to produce goods and services.

We have experienced extremely positive economic results from these efforts, and we are proud of what we have accomplished so far.

We hope that you can take advantage of the opportunities in our growing economy, and that you will utilize the services offered by the Commerce Department to expand into foreign markets.

Thank you for taking the time out of your busy day to be here with us, and we at the Commerce Department look forward to serving your needs in any way possible.

2019 Global Entrepreneurship Summits

The Global Entrepreneurship Summit (GES) is the preeminent annual gathering that convenes entrepreneurs, investors, and their supporters globally. An estimated 20,000 emerging leaders have participated in Global Entrepreneurship Summits since 2010. At previous GES summits, governments and the private sector have committed to provide over $1 billion in new capital to entrepreneurs worldwide.

On November 15, 2018, the U.S. and the Netherlands officially launched the upcoming 2019 Global Entrepreneurship Summit, which is scheduled to be held in The Hague, Netherlands on June 4-5, 2019. As previously announced by President Donald J. Trump and Prime Minister Mark Rutte in July, the ninth annual GES will underscore the commitment by both countries to entrepreneurship and innovation. The launch kick-starts the “Road to GES” events, taking place in both the Netherlands and the United States.

The 2019 Global Entrepreneurship Summit will invite the world’s most inspiring entrepreneurs innovating in Agri/Food, Connectivity, Energy, Health, and Water five key investment areas.

National Small Business Week, 2019

During National Small Business Week, we honor America’s entrepreneurs who take a risk on an idea, invest in their neighborhoods, and create jobs for others.  Small business owners exemplify the American spirit by developing new ways to provide goods and services to consumers.  As a Nation, we reaffirm our commitment to the free market so that American small businesses continue to thrive.

America’s 30 million small businesses are central to our economy and our communities.  Their courageous innovation makes our cities and towns vibrant places to live, work, and raise families.  Small businesses employ almost 59 million workers, more than one-third of our country’s labor force.  These companies foster environments that reward problem solving and accountability, enabling workers to develop skills and valuable hands-on experience that propel their careers.

The success of our small businesses depends on leadership and vision from all perspectives and backgrounds.  Approximately 10 million American small businesses are women-owned; 29 percent are minority-owned; and nearly 10 percent are veteran-owned.  As our Nation continues to enjoy record low unemployment, with African-American, Hispanic-American, and Asian-American unemployment all having achieved historic lows, we recognize that much of this success is due to small businesses creating two out of every three net new jobs in our booming economy.

My Administration is a strong ally and advocate of small businesses and their ability to help America reach its full economic potential.  Most small businesses are now able to deduct 20 percent from their taxable business income due to the Tax Cuts and Jobs Act.  This historic legislation and other pro growth policies of my Administration, including the elimination of unnecessary and burdensome regulations, have enabled small business owners to reinvest their profits into their businesses.  Additionally, we are investing in infrastructure and cybersecurity to ensure America’s entrepreneurs have the tools and technologies they need to compete in a global economy.

New initiatives are making it easier for small businesses to offer healthcare coverage options that until now have been largely unaffordable.  Moreover, once approved by the Congress, the United States-Mexico-Canada Agreement (USMCA) will better serve the interests of American workers and businesses, including through strong intellectual property protections that secure innovation and trade secrets.

The USMCA is the first trade agreement in our Nation’s history to include a chapter specifically focusing on small and medium sized enterprises.  All of these efforts to create a more friendly business environment have enabled business owners to pay bonuses, increase wages, and increase benefits — putting more money in the pockets of their workers.

This week, we celebrate the pioneering spirit, creativity, and determination upon which America has always been built.  This undaunted conviction drives our entrepreneurs and small business owners, whose hard work and perseverance give our Nation economic strength.  Their initiative, combined with the greatest workforce in the world, is enabling us to convert the unlimited potential of America into great wealth and prosperity.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 5 through May 11, 2019, as National Small Business Week.  I call upon all Americans to recognize the critical contributions of America’s entrepreneurs and small business owners as they grow our Nation’s economy.

IN WITNESS WHEREOF, I have hereunto set my hand this third day of May, in the year of our Lord two thousand nineteen, and of the Independence of the United States of America the two hundred and forty-third.

DONALD J. TRUMP

Job creation smashes expectations, unemployment rate falls to 49-year low

The United States economy continued to thrive in April, with the unemployment rate dropping to 3.6 percent—the lowest unemployment rate since December 1969, according to the Bureau of Labor Statistics’ (BLS) household survey. April also marks the 14th consecutive month of the unemployment rate being at or below 4 percent.

The rapidly growing economy continues to benefit a wide range of demographic groups. The unemployment rate for adult women (20+) reached 3.1 percent in April, its lowest rate since 1953. The unemployment rate for Hispanics fell to 4.2 percent—the lowest rate since the series began in 1973. The unemployment rate for individuals with only a high school degree fell to 3.5 percent—matching the lowest rate since 2000. The unemployment rate for those with a disability fell to 6.3 percent in April—the lowest rate since the series began in 2008. Additionally, the unemployment rate for veterans fell to 2.3 percent—the lowest rate since the series began in 2000.

The U-6 unemployment rate, a broader measure of unemployment that includes those who are unemployed, marginally attached to the labor force, and working part-time for economic reasons, remained at 7.3 percent in April, matching the lowest U-6 rate since December 2000.

A separate survey from BLS, the Employment Situation Report, showed total nonfarm payroll employment in April rose by 263,000 jobs, far surpassing market expectations (190,000). In total, the economy has added over 5.8 million jobs since President Donald J. Trump was elected. The month of April continued the longest streak of growth on record.

Employment gains have exceeded 100,000 jobs in 27 of the 29 months since the 2016 election. Including revisions for the months of February and March, the average pace of job growth has been a healthy 218,000 jobs per month over the past year and 205,000 jobs per month so far in 2019. Job gains were predominantly concentrated in professional and business services (76,000 new jobs), education and health services (62,000 new jobs), and leisure and hospitality (34,000 new jobs). The construction sector added 33,000 new jobs in April, and has added 669,000 jobs since the 2016 election.

On top of the good news about job growth, the report indicates that wages are rising, too. Nominal average hourly earnings in April rose by 3.2 percent over the past 12 months, marking the 9th straight month that year-over-year wage gains were at or above 3 percent. Prior to 2018, nominal average hourly wage gains had not reached 3 percent since April 2009. Taking inflation into account, there is more evidence that real wages are also growing. Based on the most recent Personal Consumption Expenditures (PCE) price index data from March, inflation in the past year was 1.5 percent, and, based on the most recent Consumer Price Index (CPI-U) price data from March, inflation in the past year was 1.9 percent. This offers evidence that real wages are rising, and people are able to purchase more goods and services with their larger paychecks.

These most recent BLS surveys depict a strong American economy. Employment growth in April surpassed expectations with 263,000 new jobs, while the unemployment rate of 3.6 percent is the lowest rate in nearly half a century. With continued positive job growth, sustained low unemployment, and rising real wages, the economy continues to thrive.

U.S. Economy Grows 3.2 Percent in First Quarter

WASHINGTON – Today the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) released the first quarter 2019 Gross Domestic Product (GDP) numbers. The Bureau found that the real gross domestic product increased at an annual rate of 3.2 percent in the first quarter of 2019.

“This blockbuster GDP report shows that President Donald J. Trump’s policies are unleashing the vitality of the American economy, fulfilling the President’s promise for 3 percent economic growth and benefiting American workers in the form of better jobs and higher wages,” said Secretary of Commerce Wilbur Ross. “The Trump economy has repeatedly defied the skeptics who predicted an economic downturn and has restored America’s position in the world as a consistent source of economic growth.”

The U.S. economy has gotten off to a strong start so far in 2019. In January and February of 2019, the two months for which data is available, the U.S. trade deficit dropped well below expectations. This trend continued as exports alone drove nearly half a percentage point of overall GDP growth in the first quarter.

After starting off the year by adding over 300,000 jobs in January, the economy ended the first quarter at a 3.8 percent unemployment rate. In February, annual wage growth for hourly workers increased by 3.4 percent, the fastest rate since early 2009.

As they have since the start of his term in office, President Trump’s actions have yielded real results for American businesses, workers, and families, increasing incomes while cutting taxes and regulations.

Remarks by Wilbur L. Ross at the U.S.-Mexico CEO Dialogue Leadership Dinner

April 11, Commerce Secretary Wilbur Ross addresses the U.S.-Mexico CEO Dialogue Leadership Dinner in Merida, Yucatan, Mexico

Wilbur Ross said: “The bonds between our two countries are deep. We share democratic values and cultural ties. Millions of Americans trace their heritage to Mexico.”

“Mexico is our second largest export market and is our third largest trading partner. Our integrated economies generated over $678 billion in two-way trade in goods and services last year. We also share significant cross-border investment.” Wilbur said. ” In 2017, U.S. foreign direct investment in Mexico totaled more than $109 billion.Mexico’s investment in the United States now tops $35 billion.”

” Our economic relationship supports growth, opportunity, and good jobs for millions of citizens in both our countries. The United States has developed an excellent working relationship with President López-Obrador. And we again thank the administration for its support on the many issues of mutual concern.”