Strengthening the Global Economy

As the global economy in 2010 slowly returned to growth, GE worked to promote public policies that will help ensure stronger growth in the short term and sustained growth in the long term. In particular, GE has been actively engaged in discussions in the world’s leading capitals on pressing issues of economic reform in such areas as energy, healthcare, financial services, international trade and investment, tax and government procurement. GE has sought to inform policy makers of the practical implications of proposed initiatives, as well as the costs of inaction. While we are pleased that these dialogues took place, we remain concerned by the need to further address some of the fundamental challenges confronting the United States and international economies.

One area in which we continue to be particularly focused is sustaining economic growth through international trade and exports. GE has long been an advocate for open markets at home and abroad, and we will remain so going forward. We applaud President Obama’s National Export Initiative, and believe that adopting policies that enhance international trade and investment will strengthen the global economy, raise standards of living, spur innovation and alleviate poverty.

GE’s public policy agenda seeks to foster the conditions in which international trade and investment can flourish. Specific elements include:

• Support for a strong international trading system. A strong and credible multilateral trade system, overseen by the World Trade Organization, is vital to the global economy. Developed and developing countries, governments and industry, shareholders and employees — we all share a responsibility to make meaningful contributions to protect and strengthen the international trading system.
• Support for policies that will stimulate international trade and investment, including strengthened export finance and export credit facilities, more effective trade controls and the adoption of immigration and visa policies designed to strengthen competitiveness and allow businesses and individuals to fulfill their potential.
• Support for the negotiation of additional bilateral and multilateral market-opening trade and investment agreements and entry into force of agreements that have already been negotiated.
• Opposition to the erection of protectionist barriers to trade and investment flows. For example, in 2010, GE joined with several U.S. and multinational companies and associations to challenge the adoption of government procurement preferences or forced localization regimes in various jurisdictions.
• Support for enforcement of international trade rules. From international labor and environmental standards to intellectual property rights to market transparency, all participants in the global economy must live by the international rules of the road. Technical standards should not be used to bar market access, governments should refrain from trade-distorting subsidies and WTO decisions must be respected. For example, GE has been a strong advocate for the United States’ resolving outstanding trade disputes with Mexico (trucking) and Brazil (cotton).

Ultimately, GE believes that governments should strengthen the health and education of their citizens, build necessary trade-related infrastructure, adopt prudent fiscal and monetary policies and enhance the capacity of their citizens to compete in an increasingly integrated global economy.