SENATE 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.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 28, 1988; February 3, 1988

Majority Report:  That Substitute Senate Bill No. 6672 be substituted therefor, and the substitute do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Patrick Woods (786-7430)

                  February 18, 1988

AS PASSED SENATE, FEBRUARY 15, 1988

BACKGROUND:

Recent studies, including those undertaken by the Legislature and the Department of Trade and Economic Development, indicate a need to develop a comprehensive trade strategy which will utilize the state's existing resources more effectively.

A report by existing state funded trade programs outlining the state's trade strategy is considered necessary for the Legislature to determine the need and level of future trade policies and programs.

International trade and investment have become increasingly important to the economy of Washington.  It has been recommended that Washington establish a comprehensive information network that can serve the information requests of potential investors or trading partners and provide data on potential markets to state businesses.  In addition, information on trends in trade and investment is of considerable assistance to the Legislature in developing and evaluating trade policies and programs.

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, and 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 assimilation 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 shall assist the Department of Commerce 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

Senate Committee - Testified: John Anderson, Dept. of Trade and Economic Development (pro)