More Bang for the Buck: Aligning Commercial Diplomacy Between State and Commerce

The subcommittee on East Asia and the Pacific and the subcommittee on South and Central Asia will come to order. This joint hearing will examine the division of labor between state and commerce to determine if our commercial diplomacy enterprise is as effective and efficient as intended and to examine how these two agencies coordinate in the field. Let me now recognize myself for an opening statement. Good afternoon and welcome to today's joint hearing, more bang for the buck, aligning commercial diplomacy between state and commerce. Over the past year, our committee has examined commercial diplomacy and how it supports American businesses overseas, a capability that directly shapes our global competitiveness. While the United States possesses strong tools, they are spread across agencies and implemented unevenly at our posts. The foreign commercial service delivers valuable private sector ex expertise where present. However, with only about two hundred personnel and coverage in roughly one-third of US posts, the burden of commercial diplomacy often falls on State Department economic officers who lack dedicated training. This produces gaps, unclear responsibilities, and missed opportunities for US companies. Congress must evaluate whether the current decades-old structure remains optimal. This hearing focuses on improving coordination, workforce expertise, and incentives so the right people with the right skills deliver results at post. In May, I introduced H. R. ninety sixty-two, the Boost American Business Act, that provides targeted commercial diplomacy training to State Department personnel who are already performing this work where FCS is absent. It established a foreign service specialization to build portable expertise without duplicating FCS efforts or displacing commerce personnel. The aim is simple. Equip those doing the job today to do it better while respecting FCS contributions. State is already moving in this direction. Department leadership has elevated commercial diplomacy as a priority. Under Secretary Jacob Helberg, he has stressed its centrality to US economic interests. And Under Secretary Jason Evans outlined plans to ret ret retrain economic-worned officers. And Assistant Secretary Orr launched the commercial diplomacy enterprise to better support American businesses. Since the department is advancing these efforts administratively, Congress should consider providing the necessary authorities and training to institutionalize and strengthen them. So I wanna be very clear. This is not a criticism of the dedicated FCS officers, whose accomplishments for American businesses are commendable. The challenges stem from systemic resourcing decisions that have created capacity gaps. We should celebrate what works while addressing shortcomings through better training, structural improvements, and alignment of authorities and resources. If we are serious about helping American businesses succeed amid strategic competition, we need a coordinated, expert-driven commercial diplomacy model. So I wanna thank you, Assistant Secretary Orr and Assistant Secretary Fogel, for joining us today. And I look forward to a productive discussion on achieving that goal. Let me now recognize the ranking member from California, Representative Vera, for a statement.

Thank you Chairwoman Kim, Chairman Huizenga, and Ranking Member Kamala Gurdjieff for hosting this joint hearing this afternoon. And thank you to Secretary Orr and Assistant Secretary um Fogel for appearing um before our subcommittees today. At a time in intensifying global competition, it is critical that the United States leverage um, every tool at our disposal to support American workers, innovators, and entrepreneurs while advancing our strategic interests. One of the most important and often overlooked tools we have is commercial diplomacy. Today's hearing is an opportunity to take a hard look at what is working and what is not, and what Congress can do to ensure that both the State Department and Commerce Department are positioned to advance US strategic and private sector interests in the twenty-first century. In twenty twenty five, the State Department laid off about thirteen hundred employees. At the same time, staffing levels have, at the Commerce Department's foreign commercial service, declined as a result of deferred retirements and hiring freezes. That means fewer experts on the ground in key markets, fewer advocates for American companies abroad, and fewer eyes and ears identifying opportunities and challenges in real time. Competitors like China are aggressively supporting their firms overseas with coordinated government backing financing and market access strategies. If we fail to match that level of commitment, we risk ceding both economic and strategic ground. Commercial diplomacy should lead efforts to promote emerging sectors like artificial intelligence. Um, it should help American firms compete for major infrastructure and development projects financed by international institutions. and it should play a key role in strengthening vital supply chains, securing critical minerals, and reducing reliance on our strategic competitors. But to do that effectively, both state and commerce need resources, staffing, and institutionalized coordination, and clear strategic direction. We also need to set up our officers overseas for success by adapting our institutions for the twenty-first century. We must leverage digital tools, improve coordination with other agencies, and strengthen communication between overseas officers and domestic offices. When American companies succeed abroad, they reinforce our reinforce our alliances, set global standards, and project American values. When they are absent, our competitors fill the void. I am proud to have worked with Chairwoman Kim on the Dominance Act, which passed the House last month. The bill codifies FORGE, formerly the Mineral Securities Partnership, a commercial diplomacy initiative, that allows the US to coordinate with partners and allies to diversify supply chains um from PRC control. The dominance act also strengthens inter-agency coordination through energy security pacts and builds the workforce of the future through critical mineral exchange programs. I look forward to working with your departments to advance this bipartisan bicameral legislation that ensures that your teams have the tools needed to secure supply chains vital to our national security. Thank you, and with that, I yield back.

Thank you. The chair now recognizes the chairman of the South and Central Asia Subcommittee from Michigan, Representative Huizinga, for an opening statement.

Well, thank you, my fellow chair. Uh, glad we could be doing this together, and as chairman of the subcommittee uh that uh oversees both BIS and ITA um I have sort of a unique perspective and jurisdiction uh over both export controls and export promotion uh within the Department of Commerce. Uh this morning our full committee had a hearing with Under Secretary Kessler on export controls. This afternoon I'm pleased that we are joined by Assistant Secretary for Global Markets, uh Mr. Fogel, and Assistant Secretary for Economic Energy and Business Affairs, Mr. Rohr, who are leading our export promotion efforts across the Departments of Commerce and State. Uh America first means ensuring that America's economic interests are at the forefront of US foreign policy. Uh, because as we know, economic security is national security. Uh, this is critical for my home state of Michigan, which exports over fifty eight billion dollars in goods to the world in twenty twenty five including agricultural and manufactured products, automobiles and their components, and chemicals, et cetera, et cetera. Uh, I'd be remiss, I have to throw in office furniture as well. We have the three largest office furniture makers in the world. Uh, all of which supports an estimated two hundred and thirty thousand jobs. Under President Trump's leadership, we're opening new markets for American businesses. The full potential of this new market access can only be realized if state and commerce are in lockstep. Everyone from Fortune one hundred companies to small and medium enterprises must get the resources, advocacy, and information they need to compete and capitalize on these global opportunities. In Michigan alone, eighty-nine percent of the thousands of companies exporting from our state are those small and medium sized companies with fewer than five hundred employees foreign commercial service uh is tasked with serving as America's business advocates on the ground providing everything from business intelligence to ensuring that American businesses are fairly considered and helping companies navigate the global regulatory landscape it's essential for our commercial diplomacy efforts that the FCS and the state department coordinate closely to twenty-four seven around the world support for American businesses. A key pillar of our economic promotion strategy is the new American AI export program. The administration's AI action plan lays out a two-prong approach to achieving American AI dominance. First, prevent American AI from fueling China's military modernization through export controls. Second, promote global adaptation of American AI by making it as easy as possible for our partners, allies, and emerging markets to securely build uh their build using our AI technologies. The American AI export program is the landmark initiative to deliver on the promoting prong of the strategy, and I was proud to support uh the program's codification. The Foreign Commercial Service is the lead agency implementing the American AI export program around the world. And this hearing provides an excellent opportunity to see how state and commerce are working together to execute the mission. For, from everything from AI models to Michigan blueberries, state and commerce must be working together to help our businesses navigate and compete in global markets. I wanna thank both of our witnesses for being here today, and I look forward to your testimony as you fight for American businesses. With that, I yield back.

Thank you. Other members of the committee are reminded that opening statements may be submitted for the record we're pleased to have a distinguished panel of witnesses before us today on this very important topic the honorable david fogel the assistant secretary of commerce and director general of the united states and foreign commercial service for the international trade administration at the us department of commerce and the honorable kaleb ohl the assistant secretary for economic energy and business This committee recognizes the importance of the issues before us, and is grateful to have both of you here to speak with us today. Your full statements will be made part of the record, and I will ask each of you to keep your spoken remarks to five minutes to allow time for member questions and let me now recognize Mister Fogle for an opening statement.

Chairwoman Kim, Chairman Huizenga, and members of the subcommittee. Thank you for the opportunity to come before you today. I consider it the honor of my life to be serving President Trump and Secretary Lutnik as the Assistant Secretary of Commerce for Global Markets and Director General of the US and Foreign Commercial Service. This administration is determined to deliver concrete commercial outcomes that create opportunities. for American businesses, support American workers, and strengthen communities across the country. The Global Markets Business Unit within the International Trade Administration advances these priorities by promoting US export growth, facilitating foreign direct investment, and driving commercial advocacy and diplomacy on behalf of American businesses and workers. Global Markets has achieved historic results since the start of the second Trump administration, building on a record of success since it joined the Department of Commerce in nineteen eighty-one. Last year, global markets helped US businesses, communities and workers win an incredible four hundred and twenty-eight billion dollars in client verified deals and assisted seventy-six thousand four hundred US firms. This work supported one point three million American jobs, more than twenty twenty four and twenty twenty three combined. In May we hosted the Select USA Investment Summit where we welcomed over fifty five hundred attendees, a record level, from more than a hundred international markets in all fifty five US states and territories. The twenty twenty six summit alone generated a record two and a half billion dollars in on-site announcements. This is all possible due to the highly integrated nature of the different offices within global markets and ITA. As just one example, ITA's advocacy center, which secured a record two hundred and forty-four billion dollars in wins for US companies in twenty twenty five, does not operate in a vacuum. It relies on the foreign commercial service, to amplify the US advocacy message in foreign countries. I also want to acknowledge the important partnership between the Commerce Department and the State Department when it comes to commercial activity abroad. Our commercial officers throughout the world work collaboratively with State's economic officers, each bringing distinct but complimentary expertise and responsibilities to advance US commercial and economic interests. This model has proven extraordinarily successful under the leadership of President Trump, Secretary Lutnik, and Secretary Rubio. In President Trump's first term, I worked as Chief of Staff at the Export-Import Bank, as well as Senior Advisor, uh, for the Undersecretary of State for Economic Growth. I know from firsthand experience that what we do within global markets, including our successes from last year and throughout global markets' history, reflects a distinctive combination of expertise, global reach, and commercial focus that would be difficult to replicate elsewhere in the federal government. Global Markets is moving quickly to strengthen our operations, modernize our approach, and better align resources with the administration's commercial priorities. Under my direction, Global Markets is concentrating its efforts where our expertise, global presence, and commercial tools can have the greatest impact on economic growth, job pre- creation, and economic security. In short, the Department of Commerce strongly values the foreign commercial service and the vital role it plays in advancing America's commercial interests abroad. The foreign commercial service and all of global markets is central to the federal government's ability to execute President Trump's America First trade and investment agenda, supporting US businesses around the world and delivering results for American workers, manufacturers and businesses of all sizes. Thank you again and I look forward to our discussion and your questions.

Thank you, Mr. Pogo. Now, I recognize Mr. Oh for your statement.

Thank you, Chairwoman Kim, uh, and Chairman Huizenga for inviting me to this hearing today. And thank you to the subcommittee, uh, for your focus on commercial diplomacy. The State Department acknowledges and appreciates your ongoing support for the US government's commercial diplomacy efforts. President Trump's national security strategy articulates the fundamental relationship between economic security and national security. recognizing the United States' economic strength as the foundation for our global leadership and military power, and our commercial presence in strategic infrastructure and key theaters as an important source of leverage. The State Department is focused on advancing the President's priorities of balancing trade, securing critical supply chains, re-industrializing the American economy, reviving our defense industrial base, establishing energy dominance, and preserving and growing our global economic leadership. Under Secretary Rubio's leadership, we are leveraging commercial diplomacy to drive this agenda. Commercial diplomacy helps the US forge and maintain strategic partnerships, secure critical supply chains, open foreign markets for American firms, and create opportunities for American workers. Moreover, commercial diplomacy in the Trump administration is a key tool of diplomatic statecraft. For example, President Trump's leadership in securing peace between Armenia and Azerbaijan treated US economic engagement not only as a by-product of successful diplomacy, but a catalyst for it. Similarly, in Venezuela, the Trump administration is focused on economic recovery as a key component of our strategy which has become all the more urgent after the devastating June, twenty-fourth earthquakes. In support of these objectives worldwide, Earlier this year, the State Department launched the Commercial Diplomacy Enterprise, or CDE, the most significant reorganization of state's economic state craft capacity in years. The CDE has organized and systematized the State Department's commercial diplomacy work streams. We developed a single unified platform to centralize all economic and commercial cases that the department is tracking, including both Commerce's advocacy center cases that State supports, and cases falling outside of advocacy's jurisdiction. Addressing previously debilitating data fragmentation problems and internal coordination challenges. We have also stood up new processes to consistently elevate commercial cases for the State Department leadership's engagement, and a system to share strategic deal opportunities that we identify at post with inter-agency partners. State has many tools that it uses to support US companies and trusted providers. ranging from visa issuances and denials, anti-corruption sanctions, to foreign assistance. The CDE integrates commercial diplomacy into the department's core functions at post and our regional bureaus, identifying and developing strategic commercial opportunities, using the full suite of State Department and inter-agency tools, ensuring the US competes where it matters most. As a result, since January twentieth, twenty twenty five, the State Department has contributed to five hundred and fifteen billion dollars in wins for US companies, supporting an estimate of more than one point four million US jobs. To advance the administration's trade and investment agenda, commerce in state brings distinct but complimentary strengths. State leverages its global diplomatic presence, flexible diplomatic and foreign assistance tools, and regional expertise in nearly all overseas economies, with over fifteen hundred economic officers stationed at US embassies and consulates worldwide across more than a hundred and seventy countries. Our ambassadorial leadership, broad purview over US strategic interest in foreign policy, and contacts with foreign governments and ministries allow us to contribute to the efforts of the our inter- agency partners like Commerce. We work with Commerce's US and foreign commercial service, which is focused on promoting US exports and inbound investment into the United States, as well as supporting US commercial interest overseas. State also works with the Department of Energy, leveraging its extensive technical expertise and attaches at more than twenty-five US embassies around the world. We work closely together on many initiatives, including deal teams, commercial advocacy through Commerce's advocacy center and through the Partner Post program. In many foreign markets where the Commerce Department does not maintain a direct overseas presence, the State Department's Economic Officers help facilitate Commerce's services through the Partner Post program, which delivered a hundred and sixteen client verified commercial wins totaling more than thirteen point seven billion, and assisted over three thousand US companies, uh, in fiscal year twenty twenty five, a significant increase from the two point nine eight billion in wins in fiscal twenty twenty four. Under Secretary Rubio's leadership, State will continue to leverage commercial diplomacy in coordination with our inter-agency partners, to help American companies succeed around the world, delivering for American workers and strengthening our economic and national security. Thank you for the opportunity to testify, and I look forward to your questions.

Thank you, Mr. Rohr. I now recognize myself for five minutes of questioning. Um, let me start with a very short question, hopefully it will be a very short answer. Um, both uh secretaries, uh between state and commerce, which is the lead agency when it comes to international commercial diplomacy?

I'm happy to start. Um, and I I don't believe you're gonna hear an inconsistent answer here,

It's true, it's true.

and I appreciate that question, Congresswoman. Uh, in markets where commerce, commercial staff and officers are present, uh, with obviously our state colleagues, because they're in every market, the commercial team at commerce does take the lead.

Mm-hmm.

Um, meaning, for the most part, they're the ones who maintain the deal lists. in country. They're the ones, uh, the first point of contact, often. And they're the ones taking the lead, but it's a collaborative process where we involve

Mm-hmm.

the economic officers and the ambassador as appropriate.

Let me ask you why I asked the question. You know, when I look at the, uh, State Department's, uh, social media posts, I see Assistant Secretary Oh's work at the FedEx Global Legal and Security Conference, touting, quote, market access wins and also quote unquote defending US businesses. The quote in one State Department social media post which is attributed to Assistant Secretary Orr was, in quote unquote, the State Department sees its role not as a regulator of American enterprise, but as its advocate. Good. Under Secretary Helberg's social media routinely spotlights his meetings with foreign dignitaries, and business leaders where he uses the term quote unquote commercial diplomacy to describe the work he is doing and the department even uses the hashtag commercial diplomacy in many of his social media posts regarding the work of Under Secretary Helberg. So you can understand why it might be a little bit confusing if commerce is supposedly the lead agency here but state department is doing the most visible work. So let me ask you uh Assistant Secretary Fogel, over the last decade, commerce's overseas commercial workforce has steadily declined, and under FY twenty twenty seven budget proposals, those reductions would accelerate even further. So let me point to the chart that I'm showing here. This chart shows that global market staffing is now at its lowest level since two thousand seven. I believe it's two thousand sev- two thousand seventeen. Given the sustained personnel losses, how can commerce credibly argue that it has the capacity to meet the growing demand for commercial diplomacy and effectively support American businesses overseas?

Sure. Thank you for that question. Uh, first of all, it sounds like I should s- uh, hire the marketing team from the State Department at Commerce. But seriously, uh, Congresswoman Thank you for that. Let me just say, uh, it starts with how effective we're already being. Look at the first year and a half of the Trump administration. So with the reductions that you mentioned, which are fairly modest, especially on the foreign commercial service team, um, you know, frankly, we've delivered record results, and that's, I I give a lot of the credit to President Trump, Secretary Lotnick, Secretary Rubio, uh, because they've really led the way. in emphasizing commercial diplomacy, and we welcome state's participation. I welcome those posts. I follow both of the um uh leaders that you mentioned, my colleague here and Under Secretary Helber, and we welcome them. By the way, we put out a lot of posts as well. Um, and that's okay. I don't think the fact that they're posting about the same thing that we are may means that there's that much confusion. I think it's pretty clear in at the posts, if you ask the economic officers, if you ask the ambassadors, I talk to US ambassadors all the time, they know who's leading the way, um and that's the commerce team.

Mm.

Now, um to your point about personnel, uh the fact that we delivered four hundred and twenty-eight billion last year, in overall client verified wins, the fact that the advocacy center hit a record number of two hundred and forty-four billion, Uh, the fact that we assisted seventy six thousand four hundred companies last year, I think all reinforce that we're still being very effective, notwithstanding whatever uh budget limitations exist.

Sure.

Like I said, this is in no way criticism of the work that you are doing, which I believe is doing a great great job, but I just wanted to make sure that um, you know, you are supporting our efforts to strengthen the commercial diplomacy training that state is already doing where the FCS uh is not present. So just wanted to clarify that. Assistant Secretary Orr, uh quickly, I was really excited to see last week's announcement that the US will now chair FORGE um the to secure our critical mineral supply chain with allies. So do you support Congress trying to codify FORGE?

Thank you, Madam Chairwoman, and and let me just start by saying that we work very closely with the Department of Commerce, and I think the the challenge is mainly jurisdictional. The State Department is in over a hundred and seventy countries in the world, Commerce is at over eighty, and so the State Department will do commercial advocacy for US companies no matter where we are.

Mm.

Some subset of those cases where Commerce is present come through the Department of Commerce in the advocacy process and the State Department lends our support to those cases whenever it's available. But s the state will take commercial advocacy for US companies as it comes in from whatever source um from from commerce which is a very well established process, or from other sources as well. With respect to Forge, um thank you very much for your focus, Madam Chairwoman, o on the the the essential problem of resolving our critical minerals, uh choke points around the world. Secretary Rubio uh hosted the largest ministerial in the State Department's history back in February, with fifty-five delegations. uh from around the world uh to focus on the issue of critical mineral supply chain bottlenecks and our access as a country for our manufacturing jobs, for our consumers to the essential critical minerals derivative products that power the twenty-first century economy. And Secretary Rubio uh has taken over the chairmanship of FORGE, as you mentioned, and we very much appreciate Congress's uh support and efforts to codify the United States membership in that body.

Thank you very much. Let me now recognize the gentlelady from Washington, Representative Jayapar.

Thank you so much, Madam Chair, uh and welcome to both of you. Um, Assistant Secretary Orr, in your role you cover a portfolio that includes U. S. sanctions, tied to U. S. policy goals, and so I wanna talk about Cuba. Um, this June the State Department imposed sanctions on Cuba's state-owned oil company, um, while also blocking the delivery of fuel to the island. This was on top of a crushing decades-long embargo that has made food scarce on the island and made it difficult to import medicines, medical equipment, a host of other civilian goods. Are you aware that Cuba only produces about twenty percent of its food needs on the island? You can just answer yes or no, it's fine.

Congresswoman, President Trump and Secretary Rubio have been very clear that it is not acceptable for America's national security interests.

I'm asking you about Cuba's food needs. Are you aware that Cuba only

The the national security interests of the United States will not tolerate

Can you answer the question?

ninety miles off the coast of our shores.

I I get to answer the questions under secretary, so

The

do do you are you aware that Cuba only produces twenty percent of its food needs?

Cuba is governed by a corrupt elite that's that

OK. Are you aware that since twenty eighteen,

waste away the resources of the people.

following an increase of sanctions under the first Trump administration, infant mortality increased by a hundred and forty eight percent?

Congresswoman, the the the f- the fault lies, the f-

If you're not gonna answer the questions, I'll just go through them, but I'm asking you specific questions about the conditions of the Cuban people.

Secretary Rubio has been very clear that the fault lies with the Cuban elite, who waste resources on corruption and squirrel away resources from the Cuban people.

Are you aware that in June the High Commissioner for Human Rights, it's it's my time, Mister Orr, um, are you aware that in June the High Commissioner for Human Rights at the United Nations, Volker Turk, pointed to statistics that showed infant mortality, nearly doubled in recent months, and because you're probably not gonna answer that, let me also tell you that there are Cuban nurses in maternity wards that are hand pumping ventilators due to a lack of fuel. I delivered my baby, she was one pound fourteen ounces, twenty six and a half weeks, and I went into that maternity hospital where they had four working incubators. So these are Cuban civilians who have no access to any of that. Are you aware that Article thirty-three of the fourth Geneva Convention prohibits collective punishment?

President Trump is clear that he stands with the Cuban people and against the regime that steals the fuel that powers the hospitals that steal from through.

Are Mister Orr, are you gonna answer any of my questions? Otherwise I can just make a speech. Are you aware of Article thirty-three of the fourth Geneva Convention that prohibits collective punishment? It's a yes or no question.

The collective punishment is being imposed by the Cuban regime that President Trump stands against.

OK. So do you know what collective what is the definition of collective punishment. Do you know? In the Geneva Convention?

The the Cuban regime is the one that is punishing its people.

What is the definition? Uh, obviously you don't know, so let me tell you what it is. No protected person may be punished for an offense he or she has not personally committed. And Mister Orr, that is exactly what this embargo is intended to be. It's a form of collective punishment. Ahead of the United States, placing its embargo on Cuba in nineteen sixty-two, a classified State Department memo stated that the goals of broad-based US sanctions should be to quote, deny money and supplies to Cuba, to decrease monetary and real wages, and bring about hunger, desperation, and overthrow of the government. We are sixty years later now, and none of the goals that you are talking about have been realized. But what has been realized is the Cuban people have been essentially destroyed, infant mortality up, No food, no water, no medical supplies. Since the imposition of the embargo on Cuba, has Cuba held fully democratic elections?

The Cuban people have been deprived the access to democratic elections,

So the answer is no. Have they ceased the detention of political prisoners?

by the Communist elite that runs the country.

The answer is no. And is the same regime from the nineteen sixties still in place? The answer is no. So, Mister Orr, maybe it is time for the United States to think about another way of addressing the policy goals that we have, other than punishing the entire Cuban people. That is what I saw. I don't know if you've been there recently. I was there just a few months ago. I could not believe what I saw. And I gotta tell you, Mister Orr, the American people are incredibly generous. To create that kind of collective punishment on a nation of nine million people, that is just ninety miles south of our border, I think Americans would be horrified. I think they would be absolutely horrified that young premature babies in a maternity hospital cannot get an incubator, can't get a ventilator. Doctors and nurses are holding up cell phones and using the light of their cell phones as they perform major surgeries. This is not the way to go about diplomacy. There should be a negotiated agreement between the United States and the Cuban government. And I have met with dissidents, I have met with the president, I have met with people the political spectrum, what everyone agrees on is that the collective punishment of the Cuban people is wrong. And the United States should lift the embargo, allow fuel to get to Cuba, and we should make sure that we actually invest in a relationship that helps the American people. Do you know that the Cuban health department has actually developed a treatment for Alzheimer's that n eleven million people here in the United States could have access to, if we had any kind of a relationship. My time has expired, Madam Chair. I appreciate this and I yield back.

Thank you. I now recognize the gentleman from Missouri, Chairman Huizinga, for five minutes.

Uh, it's Michigan, Madam Chair,

Michigan.

but that's okay. Uh, by definition, in international humanitarian law, protected persons primarily refer to civilians, wounded or sick combatants, prisoners of war, and medical or religious personnel who fall into the hands of an enemy party during an international armed conflict. They are entitled to humane treatment and immunity from deliberate attack. She's gone. OK. Well, apparently she didn't wanna know what a protected persons was and what article four actually does um and uh that is uh it's a it's a joke to think that Cuba is some sort of nirvana that we can go visit, it has been a failed state, I had a concentration in Latin American history and Latin American politics back in my day in college. And I did many a paper on what was happening in Central America and in Latin America, uh, uh, with, uh, with armed conflict at the time. So, uh, you're, mister Ori, you're absolutely right. Uh, Cuba, uh, is a problem, not because of the people, but because of the leadership. And that is absolutely what this administration needs to be doing, continuing to put pressure on the Cuban leadership which has failed its people repeatedly for decades. And in a country like Cuba that has to ration sugar, it's ridiculous uh to think that their system of government or their system of economics is in any way shape or uh or form successful. So, now I wanna get back to my a- actual uh questioning to you all. I have uh oversight of both BIS and ITA and the HVAC as we as we had I'm also a member of the Development Finance Corporation's Congressional Strategic Advisory Group and Vice Chair of the Financial Services Committee, where I oversee the XM Bank. Um, so I may actually have probably one of the largest oversight interests in making sure that all of American AI exports program and other programs is successful. I wanna talk about AI exports. Um, uh, we stand roughly a year after the AI actions plan release. Um, Mister Fogle, can you provide an update?

Absolutely. Um Let me do for one second just go back to Madam Chairwoman Kim. Uh, I just wanna point out that the US and foreign, the foreign commercial service uh covers ninety-five percent of global GDP in terms of where it's represented. So you had cited uh the number of embassies that we were located in and I respect that. Um, and I respect what you're doing to try to improve coordination between state and commerce but I just wanna point out that statistic because I think it's very relevant. Um, I'm sorry uh, back to you Mister Chairman. Um, there's a lot of exciting things happening with the AI AI exports program. Um, we just announced publicly that we received our first wave of applications, seventy-eight applications. for the uh pre-set consortia program. That is significantly more, uh probably three times the number of applications that we were estimating internally. Uh those applications uh span the gamut of large A USAI companies as well as some small and mid-sized companies as well. Um but we're very excited about that and the goal of the program as you know, because it was uh indicated in President Trump's executive order, is that this is a race America has to win. Um, second place failure is not an option. Uh, we have to come in first, vis-a-vis China. And so we're working on that aggressively. Uh, there's a t- inter-agency team.

So, and you and you said vis-a-vis China, I assuming that means you believe that there are proper controls that need to be put in place to make sure that China and the CCP and others that are affiliated with that are not able to gain some of that technology, correct?

Yes, and I'm sure Mister Kessler uh, testify to that earlier today.

Eh, you you would be surprised, maybe it wasn't quite as strong as we would have hoped.

OK. Well, let me just say, of course that is part of it, that's handled by BIS,

Yes, understand.

that's not my business. So as you understand well, it's

Yep. I'm I'm not beating you up.

No, no, no, that's fine. I'm just saying, and I I respect what they're doing too, cuz it is a balance. Look, do we,

Yep.

we wanna promote exports, but we also need to balance it.

I I've got a couple of other questions that I may have to put in writing. I got pulled off by the uh um by the Geneva Convention there at the beginning. Sorry about that. Um, but uh, when um, uh, here, let me f- let me finish with this, my last remaining seconds. You know, I, I'm, I'm proud of the fact that Michigan is a major exporter, uh, in uh, uh, in fact we ranked tenth, uh, among the states as a, as an exporter of all of our goods. And, uh, I wanna know what are some of the most helpful resources the F uh, uh, FCS and the state uh are able to provide to those exporters and um specifically uh can you explain uh how uh Michiganders and those businesses can get in touch with FCS and uh and State Department uh both in the United States and uh overseas.

Sure. Well the the best first place to start is the US Export Assistance Center in the State of Michigan. Um that's often the first point of contact, particularly for small businesses. They then put those companies in touch with the foreign commercial service, when needed the State Department to help if the issue was a State Department related issue. So US Export Assistance Center, it's on our website, or our DC headquarters, those are the best places.

Very well.

And that, that website is?

Uh, trade dot gov.

There we go, awesome, great. We'll make sure we get that posted. Thank you.

Great. I now recognize gentleman from Maryland. Representative Olszewski, for five minutes.

Thank you, uh, Chair Kim, uh, to our witnesses for being here as well. You know, when we talk about helping US businesses succeed overseas, we often focus on trade agreements, export financing, uh, advocacy for international companies. And to be clear, I agree, these tools absolutely matter. And commercial diplomacy is essential if we want our private sector to compete and win abroad. But I also just wanna make the point that commercial diplomacy does not operate in a vacuum. American businesses are far more likely to invest and succeed in countries with stable institutions, reliable infrastructure, a skilled workforce, transparent regulations, and the rule of law. We know such conditions do not emerge overnight. They are built over years through US development programs that strengthen market institutions, improve governance, expand access to education and health care, and that support economic reform. These conditions reduce risk and help create market conditions where American companies can compete on a level playing field. I appreciate the administration's trade over aid initiative, but I also want to make sure that we are not framing this as a false choice. The real question should not be trade versus aid, but what it takes to make trade possible. That's why it's concerning to me that this administration is not prioritizing the work that does just that. For the second consecutive year, it's proposed significant reductions in economic and development assistance, a proposed twenty-five percent cut. We all want to transition countries off aid, but signing a critical minerals deal by itself will not get us there. Assistant Secretary Orr, I saw that you spoke at the Trade Over Aid launch event back in April. Um, can you talk to us a little bit about how these kinds of devel- development assistance tools complement your bureau's work and objectives?

Well, thank you for the question, Congressman. And uh I completely agree that our foreign assistance should be aimed at driving the kind of development that only commercial investment really ca can bring. And there are certain preconditions obviously for commercial investment to be something that can be durable um you know beyond any particular uh short-term period and um we're we're absolutely at the State Department, we're focused on using the foreign assistance tools we have to drive commercial investment directly you know we we always talk about operating on trump speed. We wanna have outcomes uh that are very solid within the time horizons that we have, uh at the department. And so uh whether it's through institutions like the Millennium Challenge Corporation, which has a scorecard as you know that focuses on things like the rule of law, uh in preventing expropriation. These are the kinds of basic building blocks that can drive commercial investment and help economic growth uh in the developing world. But but more than that, with you because you mentioned critical minerals agreements, we've now signed over twenty-eight bilateral critical minerals agreements, and those critical minerals agreements form a foundation on which we can provide foreign assistance. We are providing in several countries, including some we recently provided a congressional notification to the Hill for, uh mapping resources to countries that have previously never known even uh the amount of critical minerals reserves they have in their countries. And we can do that precisely because we agreed to do so in these critical minerals agreements that uh President Trump and Secretary Rubio are pursuing. And so Those agreements, uh, which include, by the way, commitments to, you know, uh, protect the rule of law for US companies, protect, uh, US investors, give us the comfort we need to go in and help open up resources for US companies to invest in.

Great, thank you. Um, Mister Fogel, I'll follow up with a written question about the relationship between commercial diplomacy and the development assistance programs, um, just cuz I have limited time. So I apologize, I won't have time for that. But just because it came up again on, on the critical minerals, I, I had this as a, a separate topic. Um, Last November, the US sealed a mining agreement with Kazakhstan with direct involvement of President Trump and Secretary Lutnik. Around the time that deal was finalized, uh, Dominaria Securities, partly owned by the president's sons, and Cantor Fitzgerald, overseen by Secretary Lutnik's sons, got involved in the project. Uh, the Kazakh deal was ultimately signed after the Trump administration approved one point six billion in federal financing for Kaz resources, and after an investment in the same company by Trump's sons and their partners. The Trump family investment was not disclosed to the public until a New York Times story just over two weeks ago. Um, for either of you, can you just walk us through the guardrails that State and Commerce have to ensure commercial diplomacy is not being used to enrich any member of uh the family member of anyone in power, including the president?

Well, thank you for the question. Let me just say that deal is an incredibly important deal It involves the largest undeveloped uh deposit of tungsten in the world. Um and tungsten as you probably know is critical for manufacturing aerospace defense. So very important deal. Um that was has been the focus throughout um in terms of my knowledge of it and my team's knowledge has been just focused on the strategic benefits. Uh we vet every deal. We do, that, that goes through the advocacy center, which is, the, and this deal is an example of that. So we vet it, uh, in terms of ownership and other factors. So.

Yes, uh, and Congressman, we, we focus very intensely on ethics compliance. We rely on the advocacy center's certification process, and the State Department has its own certification process, uh, to insure that nobody who's working on the cases has any conflicts of interest.