REMARKS AS PREPARED FOR DELIVERY - SANDY K. BARUAH , ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT - EDA INVESTMENT CHECK PRESENTATION - GRAND FORKS, NORTH DAKOTA

FRIDAY, AUGUST 3, 2007

AS PREPARED FOR DELIVERY

Introduced by Jim Melland, Chairman of the Board of Directors for University of North Dakota Research Foundation

Thank you, Mr. Melland, for that kind introduction.

It’s a pleasure to be back in the great State of North Dakota today representing President George W. Bush, and to be with my friend Governor John Hoeven.

I’d like to also thank the representatives of North Dakota’s Congressional delegation for being here today, and thank them for their public service.

I’ve said this before and I’ll say it again, I believe Governor Hoeven is one of America’s best Governors. He is a guy who “gets it.” He’s brought together the State and local levels of government, he’s integrated key institutions such as North Dakota’s five universities – including the University of North Dakota – and has focused this array of talent and energy to build the North Dakota economy of the future.

The Governor is personally engaged in the State’s economic development efforts. I hear from him personally. I’ve traveled the State with him. He’s been in my office in Washington to discuss the efforts underway in North Dakota.

And with each passing year, North Dakota looks more and more like an old fashioned success story in our new world-wide economy. Governor, I salute your leadership and congratulate you on your success.

As you know, economic development works best when it is a locally-driven process – local people coming together for the common good to take control of their economic destiny. That’s what we’re celebrating this morning.

Of course, it can be helpful to consider the national business environment in which the companies of tomorrow are being formed here in North Dakota.

In this context, we have good reason to be optimistic. Today, the government released information that shows that our economy continues to be strong, and it is getting stronger.

92,000 new jobs were created in July, and the unemployment level remains at a low 4.6%, which many economists say is essentially full employment, and is lower than where we were at the time of the 2001 terror attacks.

The economy has created about 2 million jobs over the past year. For those of you keeping score at home, that’s over 8 million new American jobs since August 2003, more jobs than all the other major industrialized countries combined.

And last week, the government announced that the American economy grew at 3.4% in the second quarter of 2007, which is great news, showing that ours is a very resilient, diversified, and flexible economy.

One of the key reasons for America’s economic strength is the growth in U.S. exports – a reflection of our nation’s ability to succeed in the 21st Century world-wide marketplace. A Commerce Department report released last month showed that U.S. exports have increased by 11% to $644 billion year-to-date (through May) over the same period in 2006. And the trade deficit narrowed 7% or $22 billion compared to the same period in 2006.

Exports are growing more than twice as fast as imports. And the jobs associated with exports have higher wages than other jobs, which helps drive our national prosperity.

That’s why it is important to open world-wide markets to U.S. goods and services. A key tool to accomplish this is through Free Trade Agreements – FTAs.

When President Bush took office, we had Free Trade Agreements with just 3 countries – Israel, Canada and Mexico. Today, we have free trade agreements with 16 countries with 4 more pending Congressional approval.

FTAs help our companies, farmers, manufacturers and workers sell American goods and services to new markets around the world. Consider this:

• Our trade deficit with countries with which we have free trade agreements is significantly lower than with countries with which we don’t have trade agreements in place.

• FTA countries make up only 7% of global GDP, but remarkably, more than 42% of all U.S. exports are headed to our FTA partners.

NAFTA is an example of the positive impact promised by free trade agreements. NAFTA created the world’s largest free trade area, which now links 435 million people producing more than $14 trillion worth of goods and services. U.S. exports to our NAFTA partners have surged by 157% since NAFTA took effect – much higher than our exports to the rest of the world (108%). And the economies of all three member countries have grown significantly since the adoption of NAFTA: 48% in the United States, 49% in Canada, and 40% in Mexico, proving that we can indeed grow together and that free and fair trade is not just a win-win, but it is a win-win-win.

The critical role exports play in our national economy and America’s ongoing success in the global marketplace highlights the importance of the Free Trade Agreements the President is pursuing with Columbia, Panama, Peru and South Korea.

The President, the Secretary and I know that opening these markets will be a “win” for our businesses, our workers and our economy – and I hope you agree.

So, thanks – at least in part – to our strong export performance, it is clear that the American economy is resilient and strong. This is good news not just for the nation, but for North Dakota as well – because a strong, growing national economy will allow economic regions and individuals to tap into this expanding economic pie and share in our national prosperity. It takes both smart national policies and forward-thinking regional action in order for economic growth to occur, and we celebrate both today.

Of course, a little help from the Federal Government can’t hurt. And today, I have the distinct pleasure to announce an Economic Development Administration investment of $1.5 million to the University of North Dakota Research Foundation to construct infrastructure in support of its new Research Enterprise and Commercialization Park and to support its new Center of Excellence in Life Sciences and Advanced Technology facility.

Commerce Secretary Gutierrez and I share high hopes for this important project and the role it will play in the continuing success story that is North Dakota.

EDA is proud to be a partner in this important project, which demonstrates what we can achieve for America’s communities if we work together in a bipartisan fashion to create higher-skill, higher-wage job opportunities.

So now, if I could please have Governor Hoeven join me to formally present the check to Jim Melland, Chairman of Board of Directors, University of North Dakota Research Foundation, and Jim Petell, Executive Director of the same.

On behalf of President George Bush, it is my pleasure to present you with this check for $1.5 million to the University of North Dakota Research Foundation. Congratulations.

Accepting the check is Jim Melland, Chairman of the Board of Directors, University of North Dakota Research Foundation and Jim Petell, Executive Director, University of North Dakota Research Foundation

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