Gov. Christine Gregoire reports success from trade mission

For Immediate Release: September 29, 2005

SEATTLE - Sept. 29, 2005 - Gov. Christine Gregoire today said Washington businesses signed contracts amounting to tens of millions of dollars in new sales during the state�s trade mission to Japan and China. The new sales will enhance the $8 billion in existing business Washington State currently does with these countries.

The governor and delegates, including former Gov. Gary Locke, returned from the 11-day trip Tuesday.

�The bread and butter of Washington�s economy is international trade. Increasing our trade revenue by expanding in top markets and exploring new markets is vital to our state,� Gov. Gregoire said. �While we scored immediate sales the past two weeks, it is the long-term relationships we strengthened, and new connections we made, that will lead to Washington jobs in the future.

�In both China and Japan, personal relationships are critical to business partnerships. We signed two contracts during the mission that were a result of a previous mission two years ago. It takes time, patience, and commitment, but it pays off. On this trip, we cemented relationships that will result in business and jobs,� she added.

During the next 12 months projected new sales in Japan as a result of the trade mission are expected to result in more than $1 million. In China, delegates signed contracts valued at more than $6 million and representing an additional $23 million in subsequent years.

Japan is Washington State�s largest trading partner. Washington State exported more than $6.3 billion in goods and services to the country in 2004. Japan is also the largest buyer of Washington State food and agricultural exports. In 2004, ag exports to Japan grew nearly 21 percent to more than $1.6 billion.

�I cannot overestimate the potential for growth in Washington�s exports to China. Already our state�s third largest market, it is clear from our trip that the opportunities are boundless,� Gov. Gregoire said. �Washington, essentially, is the United State�s doorway to China.�

Washington State exported more than $2.1 billion in Washington goods and services in 2004, more than any other state except California, Texas, and Louisiana. If Hong Kong is included, Washington exported more than $2.6 billion to China, the governor said.

The aerospace industry leads our exports, at nearly 70 percent of the total, with other industries such as paper/wood products, food and agriculture, electronics, industrial machinery, and medical/surgical equipment showing strong growth.

The governor made her remarks during a 10 a.m. press conference at the University of Washington�s Daniel J. Evans School of Public Affairs, where she was joined by members of the trade delegation, including Director of Agriculture Valoria Loveland, and Director of Community, Trade and Economic Development Juli Wilkerson.

UW, along with representatives of Pierce College, Seattle University, Bates Technical College, Seattle University Law School and Saint Martin�s University, was represented on the trade mission to reinforce partnerships between Washington colleges and universities and their counterparts in Asia.

�Our investment in Washington�s education system is the underpinning of our economic success,� Gov. Gregoire said. �When aerospace executives in Japan told me one of their greatest concerns is a world-wide shortage of qualified engineers, I listened. When our universities make advances in life sciences research and development that are sought world-wide, I take note. Our educational system produces a highly-educated workforce, which is an asset in foreign markets and sets us apart from other states.�

Gov. Gregoire said that because neither Japan nor China can grow enough food to feed their citizens, �demand for Washington�s quality agriculture products in both countries is sky high.�

The Japanese market has a high demand for more Washington asparagus, potatoes and potato products, frozen vegetables, dried fruit and concentrated fruit juice. The demand runs high for Washington State wines and wheat in China. Wheat was the state�s second largest export in 2004, reaching $159 million, up from less than $1 million in 2003. This surge is primarily a result of the opening of the Chinese market to wheat.

�I am proud of the reputation our state�s agriculture products have in Asia for safety and for quality. We are known for exceptional products and the demand is great,� Gov. Gregoire said.

Another goal for the mission was to connect business delegates with emerging opportunities. Delegates focused on several industries, including aerospace, food processing, building materials and technology.

To that end, during the mission:
� Gov. Gregoire and delegates presented a business seminar to more than 80 Japanese aerospace and food processing business representatives and a second seminar for building materials. �Our delegates have several leads and will be following up on those in the coming months,� she said.
� Gov. Gregoire met with several Japanese aerospace companies who are supplying components for the Boeing 787 Dreamliner, to encourage them to expand their operations in Washington. �Our delegation was happy to be able to clarify our state�s aerospace incentives with company executives and learn there is interest in exploring Washington as a research and development location. So much so, that I am sending a delegation back to Japan to meet with these companies and others later this year,� the governor said.
� Along with business delegates, Gov. Gregoire participated in contract signings for design services, and environmental and building products.
� Gov. Gregoire also met with officials of the 2008 Olympics in Beijing to discuss opportunities for Washington companies to design, construct and provide building materials for the facilities and infrastructure needed for the games.


# # #