SENATE BILL REPORT

SJM 8011

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Economic Development, Trade & Innovation, February 12, 2009

Brief Description: Requesting the United States trade representative to create a federal-state international trade policy commission.

Sponsors: Senators Shin, Kastama, McAuliffe, Holmquist, Marr, Hatfield, Berkey, Franklin, Hobbs, Delvin and Jacobsen.

Committee Activity: Economic Development, Trade & Innovation: 2/10/09, 2/11/09, 2/12/09 [DP].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE & INNOVATION

Majority Report: Do pass.

Signed by Senators Kastama, Chair; Shin, Vice Chair; Zarelli, Ranking Minority Member; Delvin, Eide and Kilmer.

Staff: Philip Brady (786-7460)

Background: The United States Trade Representative (USTR) develops policy on trade and trade-related investment, and coordinates the interagency process on trade policy formulation. The USTR has primary responsibility for developing and coordinating the implementation of U.S. international trade policy; serves as the principal advisor to the President on international trade policy and the impact of other U.S. Government policies on international trade; has lead responsibility for the conduct of, and is the chief U.S. representative for international trade negotiations, including commodity and direct investment negotiations; coordinates trade policy with other agencies; and acts as the principal international trade policy spokesperson of the President.

The Intergovernmental Policy Advisory Committee (IGPAC) is a state-appointed advisory committee to the USTR. It provides state perspectives and input to the USTR. The IGPAC consists of more than 40 members and ranges from governors and their appointees to state regulators and legislators. Washington is represented on IGPAC by the Washington State Trade Representative.

Members of IGPAC are given access to classified trade information, but are restricted in their ability to share that classified information with relevant state officials, legislators, and regulators. The actions of those officials, legislators, and regulators increasingly have international trade implications, and may subject the state of Washington to international trade disputes like those regarding Boeing and the biodiesel industry.

Summary of Bill: The President, Congress, and the USTR are urged to create and fund a Federal-State International Trade Policy Commission to provide analysis, direct information flow, and foster consultation between federal trade officials and state regulators.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Staff Summary of Public Testimony: PRO: Washington is the most trade-dependant state in the U.S. One-third of Washington jobs are trade-related. Washington currently does not have enough participation in international relations regarding trade. This memorial would make Washington the first state to call on the government to take federal-state trade consultation more seriously. Other states will do it soon, but Washington could be the first. Robert Hamilton does a great job, but IGPAC is limited, and Washington is being impacted by foreign trade issues more frequently. Consultation and analytic support has been on an ad hoc basis so far, so this commission would be a good opportunity to increase connectivity between the federal government and Washington.

Persons Testifying: PRO: Senator Shin, prime sponsor; Peter Riggs, Forum on Democracy and Trade.