Governor Highlights Role of International Trade in State's Economic Recovery
Governor Schwarzenegger on Wednesday spoke at a Commonwealth Club event in San Francisco. He discussed his trade missions to Japan, China and Hong Kong, his goals for an upcoming trade mission to Mexico and the role of California's governor as the state's most important salesman.
The Governor’s policies have reestablished California as a good place to do business.
- California ’s economic landscape was grim when Governor Schwarzenegger took office.
- Unemployment hovered near 7 percent; businesses were suffering from 300 percent jumps in workers’ compensation rates; the state’s bond ratings had plummeted; and the state deficit was expanding rapidly.
- His disciplined policies have fostered real economic change, restoring confidence in California. Since he took office, California has seen:
- More jobs. California has added over nearly 570,000 jobs, and nearly 290,000 jobs were created in 2005 alone—the best gain in nearly five years.
- Lower unemployment. California ’s seasonally-adjusted unemployment rate has fallen from 6.8 percent to 5.0 percent.Total unemployment has fallen by 25 percent and is under 900,000 for the first time in five years.
- Reduced debt. The Governor has cut the state’s structural deficit by 75 percent, building investor and business confidence in the state’s finances.
- Rising incomes. Personal income in California grew by 6.6 percent in 2004 and by another 6 percent in 2005.
- Better ratings. Fitch, Moody’s and Standard & Poor’s have all raised state’s bond rating—which will save California tens of millions of dollars in debt payments and sends a positive signal to businesses.
- Economic growth. California’s economy grew by 7.7 percent in 2004 and another 6.8 percent in 2005—rebounding from 1.1 percent in 2001 and 3 percent in 2002.
- Healthy forecasts. Reports from the Silicon Valley Leadership Group, the Los Angeles County Economic Development Corporation, the Southern California Association of Governments, the University of the Pacific Business Forecasting Center and the California Department of Finance all forecast continued economic growth in 2006.
International trade is critical to job and income growth. Through his trade missions Governor Schwarzenegger is successfully promoting the California brand in order to benefit the state’s businesses and residents.
- Nearly 20 percent of all foreign trade passes through California, totaling $436 billion in goods last year alone. More than 1 million jobs in the state are supported by California trade and exports, and a half-million are tied directly to foreign investment.
- Governor Schwarzenegger has leveraged his global name recognition to showcase California around the world, promoting tourism, touting the quality of the state’s products and services, and inviting more investment. Since he took office, California exports have grown by 6.2 percent, to $116 billion in 2005.
- His trade missions to China, Hong Kong and Japan have also generated direct results for individual California industries, employers and employees. Examples include:
- McWong Environmental and Energy Group, winning $18 million worth of contracts with China’s largest steel producer.
- The California plum industry, having its product cleared to enter mainland China.
- Famima, a major Japanese convenience store chain, announcing plans to establish 200 locations across California over the next five years, adding 4,000 jobs statewide.
- United Airlines, securing an Air China contract for engine service at the San Francisco International Airport.
- QUALCOMM, announcing plans with China TechFaith Wireless Communication Technology Limited (TechFaith) to establish a new company, TechFaith Software China Limited (TechSoft), which will develop application software for wireless devices.
- On his planned trade mission in August to Mexico, California’s largest trading partner, the Governor will promote California products and services and California technologies capable of addressing some of the common environmental challenges faced by Mexico and California, such as the need for cleaner air and drinking water.
The Governor is addressing wide-ranging infrastructure, environmental and quality of life issues in ways that will contribute to California’s growing international trade.
- By proposing major improvements to our roads, highways and ports through the Strategic Growth Plan transportation bond, the Governor is improving our ability to rapidly move hundreds of billions of dollars in goods from booming Asian and Indian markets through California, keeping us a competitive point-of-entry into the US market. More than 40 percent of the nation’s total container cargo is handled by Los Angeles, Long Beach and Oakland ports.
- By proposing the nation’s most stringent greenhouse gas emissions standards and taking other progressive environmental actions, the Governor is empowering the state’s fast-growing environmental and clean technology industries.
- By protecting our natural resources and California’s extraordinary quality of life, improving our schools and enhancing our business climate, the Governor is helping to attract the world’s most innovative minds, ensuring that California employers can get the critical talent they need to continue to grow and flourish.
