Is the dozing giant awakening? President Barack Obama has outlined lofty goals for U.S. trade policy, but will his administration take the steps needed to back up the commitment to boost exports, trade and--as a result--create jobs in the U.S.?

• Author: Cheney, Glenn A.
• Position: U.S. TRADE POLICY

In his 2010 State of the Union message, President Barack Obama announced a National Export Initiative and pointedly stated that "If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores." And he made a bold commitment to double U.S. exports in five years.

He didn't mean exporting American jobs. He meant exporting American products so that Americans will have more jobs. Jobs are still an element missing in the economic recovery, and Obama seems to be on the right track in equating increased exports with increased employment.

But fulfilling the commitment may not be as easy as stating his laudable and eloquent words. Since World War II, United States exports have tended to double every 10 years. To double in half that time, they will need to increase by about 15 percent a year--no easy task in a global economy gripped by lack of cash.

Still, the International Monetary Fund predicts that over the next five years, 87 percent of world growth will happen outside the U.S. That's where 95 percent of the world's customers are, and as Americans shift more of their disposable income into savings--now 2 percent of gross domestic product--American companies will have to look overseas if they want to find a bigger market.

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Such an explosion of exportation is as optimistic as it is essential. And it's not impossible. U.S. exports have been known to come close to increases of 15 percent in a year, though never for five years in a row.

Fortunately, even in a government torn by partisan conflict, export is an area where all, or just about all, can agree. Exports help companies and workers. They help balance the trade deficit, which helps the global economy grow.

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The Path to Policy

In the year preceding the president's big promise, the nation's businesses waited anxiously to see what the new government would do to stimulate trade. Needless to say, it was a busy and contentious year for the Obama Administration. Businesses were guardedly relieved to see that the government wasn't reacting to the crisis by putting up protective barriers. Such moves only tend to encourage other countries to do the same. Slapping tariffs on imported goods and making unreasonable demands on foreign governments might have populist appeal in times of financial trouble, but the executive and legislative branches have generally resisted the temptation.

But at the same time, U.S. trade policy seemed dead. No new initiatives were brought forth. No movement toward ratifying three bilateral trade agreements that have been on the shelf and ready to go for years. No bold...