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E-commerce and small and medium sized business: how to do business with the U.S.
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I am pleased to be here today at what I view as a new chapter in U.S.-Spain Commercial Relations. This is a chapter that I believe will enhance the relations between our two countries at all levels. As Ambassador, it is my privilege to represent President Bush here in Spain and to work closely with President Aznar and my friend, Vice President Rato.
Just a few weeks ago I was at Camp David with President Bush and President Aznar and I can assure you that the relations between our two countries have never been better and that the personal relationship between our two presidents has never been closer.
This relationship has helped us deal with shared concerns, including the war on terrorism, that affect both our nations, forging a workable solution to the ongoing tragedy of the Middle East, and our mutual support for democracy in Latin America.
This unprecedented collaboration illustrates the maturity of our relations and highlights our historic links. The Spanish presence in the Americas can be seen from the open spaces of Patagonia stretching to both Coasts of the U.S. In California the old Spanish missions gave way to great cities with names like San Francisco and San Diego. In Florida, St. Augustine, - founded by Spanish explorers - is the oldest continuously inhabited city in the U.S. Our pasts are indelibly connected - so too are our futures.
Interestingly, the U.S. and Spain now have almost the same size Spanish-speaking population with the largest per capita income in the Spanish-speaking world. Together we share levels of education, political freedom, economic growth and standards of living that are a beacon to Spanish-speaking people everywhere. These strengths have helped support the growth of our companies, our technological know-how, and the entrepreneurship that have led the U.S. and Spain to be the leaders of economic growth in the industrialized world over the last few years.
Consequently, I believe it is time that we build upon this unique foundation, and further expand the economic relations between our two countries. That is why I am delighted to be here today at the start of what we view as a new partnership between our two governments and our private sectors. I am particularly glad that the focus is on small and medium size businesses and I want to thank Vice President Rato and all the Spanish government officials here today for their support on this important effort.
I know they are making serious efforts to help small businesses in Spain and their presence here shows their continuing interest and support for these firms.
As a successful businessman who started with a small company, I know how challenging it can be to build a business and to compete internationally.
However, I also know that it is the small and medium sized businesses in the U.S. that are the engine of our economy.
They create the jobs, make the innovations, and really shape the character of our people and our country. Our objective today is to identify ways for the small and medium size firms and the entrepreneurs of our two countries to more effectively collaborate as well. In that regard, I want to thank the heads of the U.S. and Spanish multinationals that are here today both for their participation and for their leadership in this area.
The companies sponsoring this seminar series have shown the advantages of strategic alliances.
Consider Cisco and its partnership with Banco Santander to link universities throughout the Spanish-speaking world; General Electric and its efforts to help small Spanish firms sell through their web-page; or the IBM partnership with our Commercial Service on the BuyUSA platform. This ongoing effort will help Spanish firms find the latest in U.S. technology or find strategic alliances with U.S. firms. Yet here is a digital divide worth noting.
Nearly 70% of U.S. firms have a business presence on the Internet while only approximately 20% of Spanish companies utilize the Internet. These firms are missing the opportunity to compete for the billions and billions of dollars on business being conducted on the Internet right now.
There are significant opportunities to use this technology right now that will help Spanish small and medium sized firms grow and compete in the global economy. Being competitive is critical in today's business world. For example, look at Telefonica's partnership with Lycos, Oracle's program with La Caixa in Catalunia, Sun's Microsystem partnership with the Spanish government on E-Government, and WalMart's recent decision to purchase millions of dollars in goods from Spanish suppliers. However, these tools mean that it is not just the large firms that have the ability to collaborate and do business across long distances. I have a perfect example to share with you. Recently, Alfa Multimedia, a Spanish software firm specializing in the medical and pharmaceutical sectors, used the Internet.
The company actually used the BuyUSA site to search for and locate an American supplier for leading edge medical information products. Technology brought the possible suppliers to Alfa Multimedia's very doorstep. Technology removed the inconveniences of distance and time and gave the Spanish firm the ability to look beyond traditional suppliers and compare numerous price and product offerings. Today the U.S. and Spanish firms have started a business relationship that is mutually beneficial to both parties.
We are here today to shrink distances and help more business people on both sides of the Atlantic, whatever their sizes, grow their businesses and through that improve their communities.
This is a program that will not end today, it is a program with a future. I want to thank President Jose Maria Cuevas of CEOE and his team for having the vision to not only host this program, but to work with my Commercial Service team to build a plan for the future.
Today is just the start of our efforts to assist small and medium sized business. We hope to do similar programs throughout Spain to help SME's do business with the U.S. Also CEOE and ANIEL, led by Jesus Banegas, have agreed to work with us to sponsor two-way trade missions to allow SMEs from both countries to get to know each other and do business. We plan visits to Silicon Valley to see and connect with the leading edge of technology and visits to Spain by U.S. firms seeking Spanish partners.
Just in the next few weeks we have a delegation of CEO's from our leading Machine Tool Manufactures, and a group of architects and engineers visiting Spain seeking partners.
I often hear concerns that the U.S. market is too complex, too competitive, or closed and firms are unwilling or unable to make the effort to enter it. In fact, it is the largest import market in the world, buying products from small and large firms from virtually every country on earth. So much so that we now have almost a 400 million dollar trade deficit.
In addition U.S. firms are leading investors in Spain. Companies like Boeing, Hewlett Packard, Ford, etc. and other firms have invested almost $10 billion in Spain in the last two years alone.
At the same time we have some of the most advanced products on earth that can enhance your firms' productivity and contribute to the Spanish economy. Our Commercial Service Team stands ready to assist Spanish firms meet U.S. suppliers and partners in virtually every important sector.
I ask all of you to make a commitment today to consider the U.S. as your business partner. I think you now know that you can work with us, CEOE, the Spanish government, and the private sector firms represented here today to help make your businesses more competitive, more global, and able to access a new world of suppliers and alliance partners.
The shape of the future is up to each of us. Let us work together to build upon our shared visions, our shared institutions and our common goals.
I wish each of you continued success.
Thank you.
Embassy
of the Unites States of America
Serrano 75
28006 Madrid, Spain
telephone: 91587-2200
fax: 91587-2303
(Within Spain use phone numbers without 34)
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