UPDATE 2-Locke says enforcement will help US double exports

* Locke says cheaper dollar not part of 3-pronged approach

* Strategy includes government advocacy for exporters

* Speech follows Obama's tough words on China (Adds more quotes from speech)

By Doug Palmer

WASHINGTON, Feb 4 (Reuters) - The United States will insist other countries honor commitments to open their markets as it strives to reach President Barack Obama's goal of doubling exports to more than $3 trillion over the next five years, U.S. Commerce Secretary Gary Locke said on Thursday.

"Free trade only works in a system of rules where all parties live up to their obligations," Locke said in a speech outlining new Obama's National Export Initiative to help shift the U.S. economy away from its heavy reliance on consumer demand to propel growth.

The plan calls for tough enforcement of U.S. trade laws against unfairly priced imports, tearing down foreign barriers to U.S. goods and cracking down on countries that fail to prevent theft of U.S. intellectual property.

"Every year, American companies in fields as diverse as energy, technology, entertainment and pharmaceuticals lose between $200 billion to $250 billion to counterfeiting and piracy," Locke said.

He did not direct his comments at China or any country by name. But Obama made clear on Wednesday the United States planned to keep up pressure on Beijing.

"The approach that we're taking is trying to get much tougher about enforcement of existing rules, putting constant pressure on China and other countries to open up their markets in reciprocal ways," Obama told Democratic senators.

Although some lawmakers favor legislation against China, Locke said the United States should not raise new barriers that could start a trade war both sides would lose.

"The president does not believe in protectionism ... The answer is not to restrict imports into the United States. It's really to increase exports," Locke said.

'ECONOMIC BLIND SPOT'

In his State of the Union speech last week, Obama set the goal of doubling U.S. exports to support 2 million American jobs, picking up on an idea touted for months by the U.S. Chamber of Commerce, a leading business group.

During the past 25 years, it took an average of 11 years for exports to double, Goldman Sachs said in a research note that called Obama's goal "very ambitious but not unthinkable."

The fastest doubling of U.S. exports took 7 years in the late 1980s, a period in which the dollar declined against other currencies and the world economy boomed.

Locke insisted there was no hidden reliance in Obama's plan on a cheaper dollar to fuel a new export boom.

Instead, he said, it relied on a three-pronged strategy of tougher enforcement, strong government advocacy for U.S. exporters and increased export financing.

"This initiative will correct an economic blind spot that has allowed other countries to slowly chip away at the United States' international competitiveness," Locke said.

"While the U.S. is a major exporter, we are underperforming. U.S. exports as a percentage of GDP are still well below nearly all of our major economic competitors," Locke said, noting that fewer than 1 percent of the 30 million U.S. companies currently export.

Although trade was badly hit by the global financial crisis, U.S. exports of goods and services set a record of about $1.83 trillion in 2008.

Exports fell in the first half of 2009 but have on been on the rise since. Final figures due out next week are expected to show total 2009 exports in the range of about $1.54 trillion.

The Obama administration estimates every $1 billion in exports supports or creates 6,250 manufacturing jobs.

Obama's plan creates an Export Promotion Cabinet that includes top officials from the Departments of Treasury, Commerce, State and Agriculture, as well as the U.S. Trade Representative's office, the Small Business Administration and the Export-Import Bank of the United States.

Each agency will be charged with developing a detailed plan over the next six months for boosting exports.

Obama also has directed the Export-Import Bank to boost export credit financing for small and medium-sized businesses to $6 billion from $4 billion over the next year, and his budget calls for $80 million in additional funding for the Commerce Department's International Trade Administration.

The new resources will allow the agency to hire as many as 328 trade experts to serve as advocates for U.S. companies and to assist more than 23,000 clients to begin or grow their export sales in 2011, Locke said. (Editing by Alan Elsner and Mohammad Zargham)