Governor Schwarzenegger Joins U.S. Commerce Secretary to Highlight the Importance of Foreign Investment and Trade to California’s Economy

Today Governor Arnold Schwarzenegger joined U.S. Department of Commerce Secretary Carlos M. Gutierrez on a tour of Hitachi Automotive Manufacturing in Torrance to highlight how foreign direct investment and global trade strengthen California and the nation's economy. The visit marked a California company selected as part of Invest in America Week, May 5 - 9.

"California leads the entire nation in foreign direct investment and we are grateful for the jobs, opportunities and technology it brings to our state," stated Governor Schwarzenegger. "When we combine foreign investment with opening overseas markets and stripping away trade barriers for our exports, we ensure a stronger more vibrant economy in California and the nation."

Foreign direct investment and trade have been integral part of California's past, present and future economic strength and development. It is estimated that more than half a million California workers are employed by foreign-owned companies and California's ports handle 40 percent of total U.S. container activity. In 2007, California exported nearly $135 billion worth of goods.

Current economic challenges reinforce the need to further strengthen trade in California. To expand international trade and support the goods movement that goes along with it, we must improve and strengthen our infrastructure.

The Strategic Growth Plan, championed by the Governor and approved by voters in 2006, will go a long way toward making major improvements to our roads, highways and ports-boosting our ability to rapidly move hundreds of billions of dollars in goods from booming global markets through California and keeping us a competitive point-of-entry into the U.S. market. Already this year, the Governor has:

Announced the approval of $3.5 billion in Proposition 1B bond funding for transportation and goods movement projects across the state.
Announced $394 million in Proposition 1B bond funding for 106 transit projects statewide.
Announced $40 million for port security from Proposition 1B bond funding.

To address California's infrastructure gap, which the Department of Finance estimates at $500 billion over the next two decades, the Governor has called for a dramatic boost in federal, private and state infrastructure investment. Specifically, the Governor:

Joined with Pennsylvania Governor Edward Rendell and New York City Mayor Michael Bloomberg earlier this year to form a new bipartisan, multi-state coalition called, "Building America's Future," to rally support for federal infrastructure investment and put pressure on presidential candidates to increase federal support of infrastructure.
Called on the federal government to increase infrastructure investment and welcomed 13 more governors from across the nation to the "Building America's Future" coalition as part of his trip to Washington, D.C. in February.
Proposed a new set of policies as part of his State of the State address to improve how California builds and finances infrastructure by enabling the broad use of Performance Based Infrastructure (PBI). These proposals include:
- Expanding the types of projects, services and government entities that can enter into PBI arrangements. PBI allows the public and private sectors to work together to deliver infrastructure services at lower cost and risk, while providing improved services for citizens.
- Increasing contracting flexibility so the state can better negotiate with potential contractors.
- Establishing "PBI California," to enable California to build, operate and maintain infrastructure better, faster and for less. "PBI California" would serve as a center for excellence to help determine which state projects can benefit from PBI, represent the state in negotiations with PBI participants, ensure transparency and monitor performance.

The Governor also reaffirmed his support today for the Bush Administration's efforts to expand trade, and urged Congress to approve pending free trade agreements with Colombia, Panama and South Korea.