Signing of Historic Assembly Bill 2012 Paves Way for California to Reopen Shuttered Foreign Trade Offices

First-of-its-Kind Public-Private Partnership with the Bay Area Council Will Open Initial Office in Shanghai, China

SAN FRANCISCO--(BUSINESS WIRE)--A nearly decade old economic sore spot will now be fixed by the Governor's signing of Assembly Bill 2012, which paves the way for California to reestablish the state’s foreign presence. It authorizes the state to form public-private partnerships with nonprofit organizations like the Bay Area Council to reopen foreign trade and investment offices.

“After six years of forging trans-Pacific collaboration between the Bay Area Council and business and government leaders in China, we know first-hand the importance of bilateral trade and investment promotion”

In February 2011, Governor Brown announced that California will open a trade office in China. GO-Biz will partner with the Bay Area Council to open and operate the first office in China, the world’s fastest growing economy. Despite the importance of foreign markets to the state – in 2011, California exported $159.4 billion to 227 foreign economies, supporting more than 440,000 jobs – California's foreign trade offices, and the Technology, Trade and Commerce Agency were closed in 2003 amidst budget shortfalls.

Assembly Bill 2012 was carried by Speaker John Perez and Governor Brown's administration to transfer international trade policy to the state’s single point of contact for businesses and job creation efforts, the Governor’s Office of Business and Economic Development (GO-Biz).

“This bill shows the world California is open for business,” said Jim Wunderman, President and CEO of the Bay Area Council. “In these tight budget times, the state will not have to spend money to reopen the foreign trade offices. The Bay Area Council applauds Governor Brown and Speaker Perez for their leadership and action on legislation that will continue California’s economic recovery.”

Escalating demand for California's products and services, the Bay Area Council has been working to build a lasting conduit for the exchange of capital, innovation and trade between California and China for more than half a decade. Through our China offices, Council staff members have helped small, medium, and large Bay Area businesses expand into Chinese markets, while working to attract Chinese businesses and investment to California.

"After six years of forging trans-Pacific collaboration between the Bay Area Council and business and government leaders in China, we know first-hand the importance of bilateral trade and investment promotion," continued Wunderman. "It has earned us a competency in what does and does not work in linking up California and Chinese businesses, or other purchasers of California products and services."

The Bay Area Council will work with other regional and statewide business-backed nonprofit organizations to identify California businesses interested in expanding into Chinese markets, or finding Chinese companies or investors looking to come to California.

California’s Technology, Trade and Commerce Agency and its 12 foreign trade offices were closed in 2003 amidst budget shortfalls. Other states, however, have recognized the positive impact that public-private international trade offices can have when governed by sound trade strategies and accountability measures. Florida, for example, gives its foreign trade program credit for adding $140.1 million to state and local tax revenues, 61,829 new and retained jobs, and $2.9 billion to Florida labor income over the 2009-2010 fiscal year. Likewise, Pennsylvania believes its foreign trade promotion program brought in $ 454.5 million in assisted export sales during FY 2008-2009 alone, with a $60 return per dollar of state investment.

About the Bay Area Council

The Bay Area Council is a business-sponsored, public-policy advocacy organization for the nine-county Bay Area. The Council proactively advocates for a strong economy, a vital business environment, and a better quality of life for everyone who lives here. Founded in 1945, the Bay Area Council is widely respected by elected officials, policy makers and other civic leaders as the voice of Bay Area business. Today, approximately 275 of the largest employers in the region support the Bay Area Council and offer their CEO or top executive as a member. Our members employ more than 4.43 million workers and have revenues of $1.94 trillion, worldwide.