Where Industry and Security Intersect
What's New | Sitemap | Search
I am pleased to be here today to describe the role of the Commerce Department in promoting the Deepwater Program as part of the Coast Guard-Navy-Commerce Team International. Before I begin, I would like to thank the National Defense Industrial Association and the Navy International Programs Office for organizing this important event. And, I would also like to congratulate the Lockheed Martin-Northrop Grumman Team on their selection as the Deepwater Systems Integrator.
Our
job at the Bureau of Industry and Security is to advance U.S. national security,
foreign policy, and economic interests. Many of you may know BIS for our role
in implementing U.S. dual-use export controls. However, we accomplish our
mission through a variety of other programs as well, such as monitoring the
health of the U.S. defense industrial base, promoting U.S. exports of defense
articles, and assisting U.S. industry in complying with international arms
control agreements.
The
Deepwater Program helps BIS fulfill its mission in two important ways. First,
we expect Deepwater to enhance the viability of the U.S. defense industrial
base. Specifically, sales of Deepwater assets to both the U.S. Coast Guard
and to foreign buyers will help stimulate a sluggish U.S. maritime industry.
A recent report conducted by my agency concluded that the commercial shipbuilding
industry in this country is generally not competitive on a global basis. For
example, as of June 2000, the United States ranked tenth in the world with
about a one percent share in the construction of new commercial vessels over
1,000 gross tons. Furthermore, exports accounted for less than 2 percent of
the shipbuilding industry's total revenues. Likewise, orders for U.S. warships
have declined 60 percent since the end of the Cold War a decade ago. Because
of these sub par sales numbers, employment in the shipbuilding industry has
decreased notably over the last two decades. Just since 1997, industry employment
has dropped by nearly 10,000 jobs, which represents 10 percent of the total
workforce. Therefore, we believe that the promotion of exports of Deepwater
assets will have a positive impact on the U.S. defense industrial base, especially
in the area of shipbuilding.
Another
way that our involvement in Deepwater helps fulfill the mission of the DOC
is by enhancing commercial relations between the U.S. and other countries.
Just as Deepwater will increase the interoperability of the U.S. Coast Guard
with foreign fleets, likewise, Deepwater offers the potential for increased
commercial cooperation between U.S. industry and manufacturers overseas, which
will help create jobs in both the U.S. and abroad.
To
highlight our commitment to Deepwater, in March of 2001, the Department of
Commerce and the U.S. Coast Guard signed a 5-year Memorandum of Agreement.
The Agreement provides that the Department of Commerce and the Coast Guard
will jointly promote exports of Deepwater assets internationally. Let me explain
how we plan to accomplish this goal.
Although we have all been waiting for the selection of the Systems Integrator
prior to aggressively marketing the Deepwater Program, Commerce has begun
to lay the groundwork to ensure its success. Specifically, we have reached
out to 
the
large sales force that we have at Commerce, known as the foreign commercial
service. The U.S. Department of Commerce has approximately 1800 employees,
stationed in more than 150 offices in 83 countries. We plan to use this tremendous
resource as the primary means to market Deepwater. We have provided detailed
information on Deepwater opportunities to our foreign commercial service officers.
And, in turn, they have begun to educate their contacts in the foreign governments
about the potential benefits of the Deepwater Program.
We have begun to raise awareness of Deepwater in other ways as well. First, we have placed a number of articles on Deepwater in journals, newspapers, and magazines, including those with international distribution. Now that the Integrator has been selected and the assets have been defined, we plan to release a supplemental series of articles.
Second,
we have hosted Deepwater briefings for foreign embassies and industries here
in Washington and overseas, including representatives from Canada, New Zealand,
Sweden, Australia, Belgium, Israel, Sri Lanka, and India. We will soon meet
with Qatar, South Africa, and a number of Indian Ocean nations. We hope to
meet with the rest of you very soon.
Third, in partnership with the Coast Guard Deepwater Team, we have placed exhibits at major trade shows from Australia to India to the U.K. Later this year, we will also be hosting exhibits with the Coast Guard at trade shows in South Africa, France, and Chile. And, we look forward to participating in future shows with the Lockheed Martin-Northrop Grumman Team.
Recognizing that not all potential foreign buyers will have the necessary
resources to participate in Deepwater, the Department of Commerce has coordinated
discussions with the Overseas Private Investment Corporation, the U.S. Export-Import
Bank, the Department of Transportation's Maritime Administration, and the
representatives from
the Defense Export Loan Guarantee Program to address the situation where export
financing may be needed to facilitate the sale of Deepwater assets.
In addition, we plan to work closely with the Navy, the State Department, and the Department of Defense to identify and address any export control issues that may arise related to the sale of Deepwater assets. Finally, we are in the process of identifying partners to conduct joint outreach programs to potential buyers. We feel that by conducting these activities prior to the selection of the Systems Integrator, we have laid a solid foundation to ensure the success of the Deepwater Program.
Through
these efforts, we hope to make the case that Deepwater assets will provide
significant benefits to foreign buyers. Clearly, Deepwater will provide national
security benefits by increasing interoperability between the U.S. military
and the foreign government. However, it is important to note that many Deepwater
assets can be utilized for non-defense functions, such as fisheries protection,
drug interdiction, immigration, customs, search and rescue, and environmental
protection. So the capabilities of Deepwater extend far beyond the traditional
security functions. And, we plan to educate our potential buyers on these
capabilities.
In
closing, I want to assure you that the DOC will work very hard with the Coast
Guard, Navy, and the Lockheed Martin-Northrop Grumman Team to promote the
Deepwater Program on a global basis. And, we look forward to reaching out
to our international friends here today and continuing this mutually beneficial
dialogue. The contacts in my agency for the Deepwater Program are listed on
the last slide. Please do not hesitate to call on us if we can be of any assistance.
Thank you again for inviting me to participate today.