Global trade can play a role in Oregon's recovery

By Bill Wyatt and Judi Johansen 

As an income tax-dependent state, Oregon must work to develop good jobs, and one way to do that is to renew our commitment to growing this region's historic role as a facilitator of international trade. 

Two recent studies -- Export Nation, by the Brookings Institution, and The International Trade Study, conducted by a consortium of Portland and Oregon business groups, as well as the Port of Portland -- confirm that imports and exports are one of the most promising competitive strengths we have to grow jobs and our economy. 

Export Nation showed that Portland is one of the top 20 U.S. metropolitan areas in exporting strength and is one of only four metropolitan areas in the country that doubled the real value of its exports between 2003 and 2008. The study also showed that exports can generate a significant number of good-paying jobs and that those jobs pay higher wages than domestic-oriented industries in large metropolitan areas. 

The International Trade Study concludes that, because Oregon is a trade-dependent state and because Portland is a metropolitan region with significant traded-sector strengths, international trade is a true bright spot in these recession-wracked times and can be a critical factor in the region's economic recovery.

Here are four ideas for ways to leverage our existing international trade strengths and grow the global competitiveness of Oregon businesses. 

First, our region must continue to make wise investments in transportation infrastructure such as the Columbia River Crossing. The efficient movement of freight on roads, rivers, rails and runways often drives business decision-making and affects the bottom line. According to Export Nation, the Portland/Vancouver region "has a rich, robust trade infrastructure that many communities of comparable size simply don't have." But if we don't leverage and grow that strength, our region will begin falling behind. 

Second, national policies such as international free trade agreements and local policies that attract direct foreign investment are critical. Just as it was in the 1980s, investment by foreign firms in our state will enhance Oregon's global competitiveness while growing jobs here at home. Back then it was the repeal of the unitary tax and initiatives like the Strategic Investment Program that helped diversify Oregon's economy and grow the high-tech sector. Today our region needs new tools. 

Third, our regional economic development efforts should focus on recruiting and retaining traded-sector industries, and we must make sure that there is enough land designated for industrial growth that is strategically located near major transportation facilities. 

Fourth is nurturing an international state of mind. By this we mean focusing on growing international acumen in Oregon schools, as well as cultural awareness in our communities. Foreign language programs, international exchange and study programs, work force development programs that focus on international business, trade missions and hosting foreign delegations are all important to growing this region's next generation of global businesses and jobs. 

As the Portland metro region begins looking at long-term solutions to rise out of the economic downturn, the growth of trade offers tremendous opportunity. It is part of Portland's and Oregon's heritage and should be a part of our future. 

Bill Wyatt is executive director of the Port of Portland. Judi Johansen is president of the Port Commission.