JOINT HOUSE SPECIAL COMMITTEES ON WORLD TRADE AND STATE/FEDERAL RELATIONS AND INTERNATIONAL TRADE AND TOURISM January 24, 1995 5:10 p.m. WORLD TRADE AND STATE/FEDERAL RELATIONS MEMBERS PRESENT Representative Ramona Barnes, Chairman Representative Eldon Mulder Representative Bill Williams Representative Gene Kubina Representative Jerry Mackie INTERNATIONAL TRADE AND TOURISM MEMBERS PRESENT Representative Beverly Masek, Chairman Representative Brian Porter Representative Pete Kott Representative Jeannette James Representative Irene Nicholia Representative Caren Robinson WORLD TRADE AND STATE/FEDERAL RELATIONS MEMBERS ABSENT Representative Gail Phillips, Vice Chairman Representative Gary Davis INTERNATIONAL TRADE AND TOURISM MEMBERS ABSENT Representative Alan Austerman, Vice Chairman OTHER HOUSE MEMBERS PRESENT Representative Jerry Sanders Representative John Davies COMMITTEE CALENDAR Presentation from Chuck Becker, District Director, U.S. Foreign Commercial Service and Robin Zerbel, Director, World Trade Center. WITNESS REGISTER CHARLES F. BECKER, District Office Director International Trade Administration U.S. Foreign Commercial Service World Trade Center Alaska 421 West First Avenue, Suite 300 Anchorage, Alaska 99501 Telephone: 271-6237 POSITION STATEMENT: Overview of U.S. Foreign Commercial Service E.H. PETE NELSON, Regional Land Manager TEXACO, Inc. Post Office Box 100899 Anchorage, Alaska 99510-0899 Telephone: 278-9611 POSITION STATEMENT: Board Member of World Trade Center ROBIN R. ZERBEL, Director World Trade Center Alaska 421 West First Avenue, Suite 300 Anchorage, Alaska 99501 Telephone: 278-7233 POSITION STATEMENT: Overview of World Trade Center JOSEPH M. BEEDLE, President Goldbelt, Inc. 9097 Glacier Highway, Suite 200 Juneau, Alaska 99801 Telephone: 790-4990 POSITION STATEMENT: Board Member of World Trade Center WILLIAM L. BLACHMAN, Ph.D., Dean University of Alaska Anchorage School of Business 3211 Providence Drive Anchorage, Alaska 99508 Telephone: 786-4125 POSITION STATEMENT: Board member of World Trade Center ACTION NARRATIVE TAPE 95-1, SIDE A Number 000 The Joint Meeting of the House Special Committees on World Trade and State/Federal Relations and International Trade and Tourism was called to order by Chairman Ramona Barnes at 5:10 p.m. Members present at the call to order were Representatives Barnes, Mulder, Williams, Masek, Porter, Kott and Nicholia. Members absent were Representatives Kubina, Mackie, James, Robinson, Phillips, G. Davis, and Austerman. Number 033 CHAIRMAN RAMONA BARNES welcomed the committee members and public to the first meeting of this committee. She introduced Representative Masek, Chairman of the International Trade & Tourism Committee. Chairman Barnes stated this committee looks forward to enhancing the relations of this state and that the areas of interest will include world trade and how the state can promote trade that will benefit Alaska. While deals involving millions of dollars are important, so are opportunities for small businesses to find trading partners and make investments in foreign countries. She noted in a recent state economic report that Alaska's exports fell 24 percent in 1993. Half of that total is just one commodity--fish, and of the $2.7 billion in goods exported in 1993, Japan purchased over $2 billion worth. Chairman Barnes said we must expand trade with other partners including China, Taiwan and Russia. We also must take a more active role in asserting our rights with the federal government as they relate to our state and our state sovereignty. Number 095 REPRESENTATIVE BEVERLY MASEK, Chairman of the International Trade & Tourism Committee, also welcomed the committee and thanked the public for their representation. She said the state had not taken a strong look toward tourism and that her committee looked forward to hearing from the public so the committee may have a good overview of the areas that need work. Number 116 CHARLES BECKER, District Director, U.S. Foreign Commercial Service, testified via teleconference from Anchorage. He gave an overview of the agency and its mission, how they operate; how they help Alaskan companies; and thirdly, to discuss a conversation he had with Willie Hensley, Commissioner, Department of Commerce and Economic Development, and the transition team. Mr. Becker said the agency is a group of marketing professionals that spans the globe and has about 135 locations. Those locations are typically the hottest markets for U.S. products and services. He stated the agency also has 70 domestic offices. The service began in 1980 with the passage of the trade bill at that time. Prior to that, the service was a function of the State Department. He commented they have a sophisticated technical system called a National Trade Data Bank that will assist companies in conducting business. The agency is now located with the World Trade Center (WTC). He said they look forward to working with their "missing" partner, the Governor's Office of International Trade. MR. BECKER said that a joint strategic plan with his agency, the World Trade Center and the Office of International Trade has been developed to address the problems of trade development in Alaska. He indicated there would be export seminars. MR. BECKER said in a brief conversation with Commissioner Hensley and members of the transition team, he had pointed out that it is very important that the commissioner take a look at the Governor's Office of International Trade to make sure that we work as closely as we can to eliminate any duplication and to develop the strategic plan to define common objectives and common implementation strategies. Number 370 CHAIRMAN BARNES noted as a side comment how pleased she is that Mr. Becker is working on exporting our cold weather technology as it relates to our development of our oil patch at Prudhoe Bay. She also noted that Taipei is one of the largest trade centers in the world and a sister city to Anchorage, and yet that office is closed and we could have free space there. Number 400 MR. BECKER noted that the office was closed about four years ago; although Alaska has a small contract with an individual there who is doing excellent work. Number 425 MS. PETE NELSON, Board Member of the World Trade Center, gave an overview of the origin and operation of the WTC. The advisory board is made up of people from the banking community, oil companies, law firms, Native corporations and retail merchants as well as government agencies involved in international trade activities. Representatives Mackie and Kubina arrived late. Number 455 ROBIN ZERBEL, Director, World Trade Center, stated the WTC is an association that consists of 200 organizations throughout Alaska with its headquarters in New York. She stressed the importance of how we can increase the success of Alaskan companies without expanding significantly our financial resources. She said the mission is to facilitate trade for the member companies. It's a two-prong approach with networking as the facilitator. Services and facilities component make up the two parts of the mission. She commented that we do 80 percent of our business with Russia. Representatives James and Robinson arrived late. Number 499 MS. ZERBEL offered the services of the WTC to the state of Alaska. There are six key elements to the success of trade in Alaska's future. They are education, leadership from the state of Alaska, develop a strategy, trade financing, trade missions and trade shows, and publicity. She offered the cooperation of her agency to work closely with both committees in any effort to promote and enhance trade in Alaska. Number 644 CHAIRMAN BARNES related her trip with Representative Phillips this past summer to Taipei. REPRESENTATIVE JEANNETTE JAMES stated that Alaska has just exported its first shipment of potatoes to Taiwan and that more shipments were planned. Number 689 JOSEPH BEEDLE, Board Member of WTC, said this is a public-private partnership that is funded by 70 percent of people who are willing to pay for the resources that are provided. TAPE 95-1, SIDE B Number 000 DR. WILLIAM BLACHMAN, Board member of the WTC, agreed that the joint-venturing is going to prove very valuable to Alaska businesses. REPRESENTATIVE JOHN DAVIES inquired about the relationship between the WTC and the mission of the University of Alaska. MS. ZERBEL explained that it is very important to teach people how to do business internationally. It's like having a classroom without walls. Number 064 REPRESENTATIVE BRIAN PORTER noted that there isn't an awful lot of coordination with the energy industries or timber in Alaska, but since fish is such a large export, he wanted to know if they were related in any way to the Alaska Seafood Marketing Institute (ASMI). MS. ZERBEL said they work very closely with the Office of International Trade, who works with ASMI. MS. ZERBEL commented that the tourism area is one of those areas that they work cooperatively with convention and visitors bureaus and the Alaska Visitors Bureau and when there is a cross-over, we work with them, but the WTC does not take on tourism because they are not in a position to take on tourism. Number 120 REPRESENTATIVE CAREN ROBINSON inquired about how to become a member and how are board members chosen. MS. ZERBEL stated there is a $300 annual fee and they have many fund raisers. The board members have been historically appointed by the chancellor of the University of Alaska Anchorage. CHAIRMAN BARNES announced the next committee meeting will be Tuesday, January 31 at 5 p.m. to hear HB 83 and HJR 8. ADJOURNMENT There being no further business to come before the House Special Committee on World Trade and State/Federal Relations, Chairman Barnes adjourned the meeting at 6:05 p.m.