U.S. Secretary of Commerce Carlos Gutierrez on small business growth. WATCH VIDEO

During the Americas Competitiveness Forum in Atlanta June 11-12, the U.S. Commerce Department released a report on ways the Western Hemisphere can increase competitiveness, create jobs, raise living standards and reduce poverty.

The Competitiveness in the Americas: Promoting Prosperity and Economic Opportunity report focuses on fostering innovation, supporting small business development, creating global supply chain strategies and encouraging education and workforce development in the region.

U.S. Secretary of Commerce Carlos Gutierrez outlined the report in his opening address at the Atlanta forum, highlighting the need to strengthen partnerships in the Americas to extend opportunity, reduce poverty and raise living standards. “True social justice is the ultimate goal of this forum,” he said.

He told GlobalAtlanta following the address that small business development and trade were keys to the hemisphere’s competitiveness.

“Small businesses that look to the outside world early on, that look to export, not only are they able to grow, but because they are exporting, they have to design standards that are exportable. They have to have processes that are sophisticated enough to be able to export to the outside world,” Mr. Gonzalez said.

Favorable regulation, increased free trade, sound fiscal policy, a steady and fluid labor force and economic freedom are necessary for small businesses and entrepreneurs to succeed in the Americas, he said during the forum.

Encouraging innovation in biotechnology, nanotechnology and other sciences, as well as innovative processes outside of laboratories, is important for all countries in the Americas, especially as parts for products are sourced and manufactured in multiple locations, he said.

Supply chains are global, but companies in the Americas need to collectively develop more streamlined processes, and governments should ensure competition by reducing regulatory burdens, Mr. Gutierrez said. Licensing procedures should be simplified, and physical infrastructure needs further development, he added.

He heralded free trade agreements between countries within the hemisphere as helping incomes grow three times faster than in countries not involved in FTAs. He cited the United States’ 12 FTAs in the hemisphere as crucial to the region’s competitiveness in the face of growing Asian economic cooperation, such as a future PanAsian FTA, with increasing interest from China.

Meanwhile, other countries are growing faster than the Americas, Mr. Gutierrez warned. China’s investments in infrastructure led to its 19 percent growth rate in roads last year, he said, noting that the country built 900 new port berths between 2001 and 2005.

While China’s economy has been growing at least 10 percent per year and India’s at 9 percent, the Americas region’s share of world gross domestic product dropped from 34 percent in 1990 to 29 percent last year. The Americas’ share of global investment dropped from 29 percent to 27 percent in the same time period.

“Capital goes to markets that welcome investment and trade,” he said, encouraging hemispheric leaders to develop stronger and more abundant strategic partnerships in the region.

“We need to collaborate to remain globally competitive, to extend prosperity in the hemisphere, encourage investment, security, opportunity and hope,” Mr. Gutierrez said.