(DES MOINES) - Iowa Gov. Terry Branstad, Lt. Gov. Kim Reynolds, Sec. of Agriculture Bill Northey and Iowa Economic Development Authority director Debi Durham today sent a letter to Iowa's congressional delegation encouraging the passage of Trade Promotion Authority (TPA), reforming and reauthorizing the Export-Import Bank (Ex-Im Bank) and authorizing market-opening trade to encourage economic development and family income growth.
The letter can be read here.
Since 2010, Iowa's exports have increased by nearly 39% from $10.87 billion in 2010 to $15.1 billion in 2014.
"Lieutenant Governor Reynolds and I are proud that Iowa's exports reached record levels last year at over $15 billion, increasing our state's exports by nearly 39 percent since 2010," said Branstad. "If we are to continue this strong growth - which creates jobs and increases Iowa family incomes - we know that Congress and the President must continue to look for opportunities to expand the global market for high-quality Iowa products."
"As I prepare to lead a trade mission to Brazil this week, I am reminded that the United States should be a global leader in breaking down trade barriers, as great nations embrace trade," said Reynolds. "Our nation should welcome a more transparent, rules-based system of trade around the world that helps our businesses, workers, and farmers excel in a dynamic, global economy."
The Brazil mission that Reynolds is leading is comprised of visits to Sao Paulo and Ribeirão Preto. Highlights for the mission include exploring foreign direct investment opportunities, meetings with government and industry association officials, briefings on Brazil's trade market and Growing Iowa's Global Partnerships events. Iowa companies will participate in meetings specific to their market entry or expansion needs.
"The Iowa Economic Development Authority continues to look to international trade and investment to expand economic development opportunities here in Iowa," said Durham. "Since the governor and lieutenant governor took office, over $11 billion in private capital investment has occurred in our state. Congress' ability to continue opening global trade markets will mean more jobs through high-quality economic development projects."
The full letter can be read below:
April 21, 2105
The Honorable Chuck Grassley The Honorable Joni Ernst The Honorable Steve King
135 Hart Office Building 825 Hart Office Building 2210 Rayburn Office Building
Washington, DC 20510 Washington, DC 20510 Washington, DC 20515
The Honorable David Loebsack The Honorable Rod Blum The Honorable David Young
1527 Longworth Office Building 213 Cannon Office Building 515 Cannon Office Building
Washington, DC 20515 Washington, DC 20515 Washington, DC 20515
Dear Members of the Iowa Congressional Delegation:
Iowa is globally recognized for producing safe and reliable products and innovative services. Robust trade is a critical component of a healthy Iowa economy, however, too often, Iowa exports face isolationist obstacles abroad. We believe that Iowa's manufacturers, farmers, and service providers, like financial service companies, can compete with anyone in the world when there is a level playing field. We have all actively assisted Iowa exporters in growing Iowa's global partnerships and we know you would like to nurture those partnerships as well. Therefore, we are writing to highlight key opportunities for you and other Federal leaders to support economic growth, family income growth, and improved national economic competitiveness by passing Trade Promotion Authority (TPA), reforming and reauthorizing the Export-Import Bank (Ex-Im Bank), and helping advance market-opening trade agreements.[1] TPA will strengthen the hands of U.S. trade negotiators and help achieve solid results for U.S. companies, farmers, and workers in ongoing trade negotiations. TPA would also enable advancement of trade agreements, like the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP), to empower America's job creators. Further, Ex-Im Bank reforms and reauthorization will help level the playing field in the global market for U.S. companies.
With over 95 percent of the world's population located beyond our borders, international trade is a key component to economic growth and increasing family incomes. Scores of Federal leaders, including many of you, President Obama, Ambassador Froman, Secretary Pritzker, and Secretary Vilsack have touted the importance of trade to the American economy - and that is especially true for Iowa's economic vibrancy. In Iowa, over 448,000 jobs (nearly one in every five jobs) depend on international trade and the majority of exporters are small and medium sized companies.[2] We have actively supported efforts, including various trade missions, to grow Iowa's global partnerships to expand exports and nurture foreign direct investment in the State. Between 2011 and the end of 2014, the value of Iowa exports increased by nearly 40% -- from $10.8 billion to $15.1 billion -- and we want to further that trend.[3] There are 3,367 companies that exported from Iowa locations to nearly 190 countries in 2013 and over 83% of those companies were small or medium-sized businesses.[4] Export-related jobs have higher pay than non-trade-related jobs, which means that trade jobs help drive rewarding careers in Iowa communities.[5] Iowa businesses and agricultural producers recognize the importance of pro-growth trade policies to their future success.
The Ex-Im Bank is an important tool for Iowa businesses seeking to expand their markets. We believe reauthorization provides an opportunity for Congress to enact needed reforms to ensure the program's success and long-term sustainability. From 2007 to early 2015, the Ex-Im Bank helped support nearly $250 million of exports from more than 50 Iowa businesses - a majority of which are small businesses.[6] The Ex-Im Bank has helped grow exports from areas such as food manufacturing, machinery manufacturing, and plastics and rubber products manufacturing. Enclosed, please find quotes from Iowa companies regarding the Ex-Im Bank's role in connecting Iowa companies to competitive foreign markets. We believe in a culture of continual improvement and that is why we would support efforts to improve the Ex-Im Bank moving forward. Given that other countries utilize similar tools, your help in reauthorizing Ex-Im Bank is important to enable the financing that American businesses, especially those with little or no export experience, need to compete against their foreign counterparts in new and higher-risk markets. In addition, Ex-Im Bank fees have brought revenue into the U.S. Treasury.
We believe that the TPP and T-TIP trade agreements will enable more Iowa companies and farmers to expand exports and services to these markets. Countries negotiating the TPP and TTIP agreements purchased $11.3 billion, or 64%, of Iowa goods exported in 2013 and the elimination of tariffs and other trade barriers would directly benefit Iowa's economy.[7] The US Chamber of Commerce has estimated that the TPP would support several hundred thousand jobs nationally by 2025, including nearly several thousand jobs in the State of Iowa by increasing goods and services traded to participating countries.[8]
We urge your leadership on these important trade initiatives - passage of TPA and reform and reauthorization of the Ex-Im Bank - to advance long-overdue trade agreements and enable our businesses and citizens to compete fairly in the world market, drive job creation, and grow family incomes.
Sincerely,
Terry E. Branstad, Governor of Iowa
Kim Reynold, Lt. Governor of Iowa
Bill Northey, Secretary, Iowa Dept. of Agriculture & Land Stewardship
Debi V. Durham, Director, Iowa Economic Development Authority
