ST. PAUL, MN — Yesterday, legislation authored by Representative Mary Sawatzky (DFL – Willmar) to increase funding to the Minnesota Trade Office received a committee hearing in the House Jobs and Economic Development Finance and Policy Committee. The Trade Office works to help Minnesota businesses navigate foreign markets and trade regulations so they can increase their exports and put more Minnesotans to work.
The bill (HF4) would increase the Trade Office’s yearly funding from $1.78 million to $2.5 million for fiscal year 2014 and 2015. An amendment was adopted in committee to add an additional $500,000 funding for the Minnesota Department of Agriculture work with the Department of Employment and Economic Development to help the agriculture industry increase exports.
“This bill would open up markets for Minnesota businesses and farmers throughout Greater Minnesota, bringing them more revenue, and growing more jobs,” said Rep. Sawatzky. “Increasing our exports and expanding our markets will go a long way to growing our economy and middle-class jobs.”
Even when the national economy was feeling the effects of the recession and growth was sluggish, exports from Minnesota companies were booming. From 2009 to 2010, total exports grew from $14.6 billion to $17.2 billion, a 17 percent increase.
Minnesota exports grew to $20.3 billion in 2011, which represents a 7.3 percent increase over 2010. Exports continued to grow in 2012. In each of the first three quarters of 2012, exports were higher than in 2011, including an all-time record of $5.4 billion in the second quarter. Final, total exports for 2012 are projected to exceed $21 billion.
Minnesota is a national leader in agricultural exports. In 2011, Minnesota was the 6th largest agricultural exporting state with a record-high of $6.8 billion in total agricultural exports—a 13% increase over 2010. Minnesota’s agricultural exports generated a total of $8.7 billion in total economic activities and supported more than 46,000 jobs in 2011.
When Minnesota opened its first trade office in China in 2005, the state saw a 71 percent increase in exports to China in one year. That is currently our only trade office. Illinois has nine trade offices, Iowa has four offices, and Wisconsin has nine offices.
Data from the Brookings Institute demonstrates how increasing exports leads to job growth, with each $100 million increase in exports leading to approximately 665 new jobs.
“This is a proven solution that can boost our economy, help our businesses, and grow jobs,” said Rep. Sawatzky. “We shouldn’t continue to lag behind our neighboring states and economic competitors.”
The bill was positively received in committee and laid over for possible inclusion in an Omnibus Jobs and Economic Development Bill.