HOUSE BILL REPORT

HB 1437

BYRepresentatives Heavey, Schoon, Cantwell, Holm, May, Wineberry, Winsley, Vekich, B. Williams, Kremen, Braddock, Grant, Rasmussen, P. King, Doty, Sanders, Dorn, Ferguson and Day

Establishing an international trade leads program.

House Committe on Trade & Economic Development

Majority Report:  Do pass. (15)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Cantwell, Doty, Fox, Grant, Hargrove, Heavey, Holm, Kremen, Moyer, Rasmussen and B. Williams.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

JANUARY 22, 1988

BACKGROUND:

International trade has become a more important element in the state economy as a result of the internationalization of the economy.  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 also 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 recent 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 particularly large 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 especially 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.

SUMMARY:

The Washington Trade Leads Program is established within the Department of Trade and Economic Development.  The Department is directed to establish a computerized trade leads network to access the data on trade opportunities currently collected by the federal departments of commerce, agriculture, and other relevant sources.  The computer network is to provide leads on foreign markets for in-state producers of goods and services.  The network is also to respond to inquiries from foreign buyers seeking to purchase goods and services.  The program is permitted to charge fees for its services. There is an appropriation of $75,000 to the Department of Trade and Economic Development from the General Fund.

Appropriation:    $75,000 to the Department of Trade and Economic Development.

Fiscal Note:      Requested January 25, 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.