Trade Groups Announce Strategy For Jobs

Last week the Trade Development Alliance of Greater Seattle (TDA) and the Washington Council on International Trade (WCIT) released the International Competitiveness Strategy for Washington State. The report updated information on the importance of trade to Washington's economy and identified strategies to increase trade. The last major analysis of trade in Washington state was completed in 1999.

"International trade is key to the economy of the Puget Sound region," said Snohomish County Councilmember Dave Gossett, who is also an officer of the TDA. "The report shows that at least 40% of Washington state jobs are tied to international trade."

The report found that in 2011 Washington exported more than $64 billion in merchandise and commodities. Exports per capita were more than double that of any other state. The two major drivers of Washington state exports are transportation equipment (primarily aerospace related) and agricultural products.

"The report's findings highlight the importance of exports to Snohomish County," commented Gossett. "Aerospace and agriculture are both major industries here."

Where these products go was also identified in the report. A majority go to Asia, with China being the state's number one export market. Canada is second, followed by Japan, South Korea, the United Arab Emirates, and Hong Kong.

Service exports are another key part of the trade picture. Service exports include items such as software, professional services (architectural, legal services, financial services, etc.), and tourism. Total service exports exceed $23 billion, with the lion's share ($13 billion) being software and IT services.

European countries represent five of the top ten destinations for service exports, although Japan and Canada rank numbers one and two. Tourism is one of the fastest growing sectors, with a 32% increase in 2010 over 2009 (the largest in the nation). The number of tourists from China is increasing particularly quickly with an increase of 48% in 2011.

"People often don't think of tourism in terms of trade," said Gossett. "But last year approximately a half million international tourists traveled to Washington. That brings foreign dollars to stimulate our economy in that same way that selling products overseas does."

Imports also play a key role in producing jobs. 18% of state jobs are linked to imports. Washington state ports play a key role as international gateways and as such are responsible directly and indirectly for a high number of family-wage jobs related to the movement of freight into the country. Additionally, Washington is home to major manufacturers and retailers who use global supply chains as part of their business.

 The Strategy concludes with the six recommendations listed below:

• Communicate to the state's public and leaders the importance of trade to the economy.
• Work with the Legislature for increased investments to enhance international competitiveness. Key areas would be transportation of freight and education.
• Organize business/labor/government coalitions to work with Congress on key trade issues like the Export-Import Bank.
• Increase port competitiveness with other region's ports by providing for improved freight infrastructure and ensuring that Washington ports can benefit from the Harbor Maintenance Tax.
• Create a statewide group to coordinate trade related activities.
• Focus on increasing trade in key industries and with key countries.

"Given the importance of trade to our region it's vital that we work to preserve and expand our role in the international economy," said Gossett. "TDA and WCIT have produced a roadmap for doing so."

For more information and to see the actual plan go to http://www.seattletradealliance.com/strategy.php