Branstad, Durham encouraged by South American trade mission

Outside of China and Asian markets, the South American countries of Brazil and Chile may hold the best growth potential for Iowa to expand trade opportunities and attract foreign investors looking to establish job-creating business ventures in the United States, Gov. Terry Branstad said Friday.

“There's been substantial growth in trade with both Brazil and Chile in recent years. We anticipate that is going to continue to grow,” Branstad told Iowa reporters during a teleconference from Santiago, Chile, where he is leading a trade mission that wraps up later this week. “In terms of South America, I think these countries are our best prospects. Other than China, I think this is where we have the greatest potential for growth.”

Branstad and Debi Durham, director of the Iowa Economic Development Authority, said the delegation has been well-received and impressed by the prospects for collaboration in economic areas of mutual interest – particularly agricultural and value-added production, renewable energy, advanced manufacturing and cultural exchanges.

“They are very interested, not only about investing in the United States but specifically in learning more about Iowa,” said Durham. Likewise, nurturing international partnerships is a key element of the Branstad administration's strategic growth plan and trade missions like the current one to Brazil and Chile help promote trade channels and provide Iowa officials a chance to directly thank companies already doing business here as well as to “make the case for Iowa as a value proposition as far as direct foreign investment,” she added.

While Brazil competes directly with Iowa for agricultural markets, Branstad said there are many opportunities for collaboration to their mutual benefits. He noted that Brazil officials are closely monitoring the drought situation in the United States and likely will gear up corn and soybean production to meet world demand, while companies with Iowa ties – like Pioneer – likely will bolster seed production in the southern hemisphere to supply Iowa farmers for the next growing season.

“They're going to do their best to make up for some of the lost production. Obviously, we all have concerns about the spike that we've seen in prices, but I feel confident that by cooperating and working together between America and Brazil – and Iowa in particular – that we can meet the world demand for food,” the governor said.

“Yes, there is some competition and we're both supplying similar things but, frankly, we think there is enough demand from China and other growing countries in Asia for both of us to do well and collaborate and work together. We're very excited about it,” he added.