HOUSE BILL REPORT

ESSB 6672

BYHouse Committee on Economic Development & Labor (originally sponsored by Senators Lee, Conner, Warnke, Smitherman, McMullen, Deccio and Zimmerman)

Requiring the development of comprehensive international trade strategies.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (13)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Cantwell, Doty, Fox, Grant, Holm, McLean, Moyer, Rasmussen and Schoon.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 24, 1988

BACKGROUND:

Washington State is more dependent upon international trade than any other state in the United States.  This dependence consists of goods and services produced in the state and exported abroad and of the processing of goods through the state's ports and airports.  The United States volume of trade with Asia has exceeded its volume of trade with Europe in the last year for the first time.  The increased volume of trade U.S. trade with Japan and with the newly developing East Asian countries such as South Korea has further increased the importance of trade in the state economy.

The recent stock market crash, the national trade deficit, and the sharp slide in the value of the dollar relative to the yen are harbingers of a period in which U.S. exports can be expected to sharply increase.  A critical factor for firms to participate in international markets is the capacity to identify the niche markets and potential buyers for their products. Small and medium-size businesses have a need for such information, provided in a timely fashion. The volatility of international markets, and the critical importance of market share make the accessibility and timeliness of such information important. Information on trade leads currently collected by the federal departments of commerce and agriculture cannot currently be accessed for use by in-state exporters of goods and services quickly and accessibly.

The Department of Trade and Economic Development's Advisory Council on International Trade submitted a report in 1987 recommending the establishment of a trade information network to more effectively promote Washington products.

SUMMARY:

The Department of Trade and Economic Development, in conjunction with the Department of Agriculture and in consultation with other state-funded international trade programs, is directed to:  develop a comprehensive strategy to coordinate the various sectors of the international trade and investment community; establish comprehensive performance indicators to quantify the impact of trade programs; review international programs in other states as possible models for Washington; determine the impact that international trade has on imports and the creation or loss of jobs; outline the level of coordination needed among trade assistance programs, and the most effective manner of developing a comprehensive trade assistance network. The departments are required to report to the appropriate House and Senate standing committees with recommendations by December 1, 1988.

The international trade and investment information program is established within the Department of Trade and Economic Development. The program is intended to provide a centralized location for the assembly and distribution of trade and investment information, including: international trade leads which assist Washington businesses in exporting products and services; investment leads which assist in attracting investments to Washington State; a listing and background information on trade-related organizations in Washington State; a listing of businesses in the state which are involved in international trade or investment; information on trade tariffs and quotas encountered by Washington State products; export and import statistics; and a statewide industrial site inventory to assist in the location of new businesses throughout the state.  The Departments of Ecology and Community Development are to assist the Department of Trade and Economic Development in compiling the site inventory.

State and local governments involved in international trade are required to assist the department in compiling and distributing the program's trade data.  The department is required actively to promote the use of the program's information services. Additionally, the department's director is required to report to the Legislature by December 1 each year outlining the program's activities, effectiveness and legislative recommendations. $50,000 is appropriated to the Department of Trade and Economic Development from surplus funds in the State Trade Fair Fund.

Fiscal Note:      Requested February 19, 1988.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.