Branstad, Reynolds to lead Iowa trade missions

DES MOINES - Gov. Terry Branstad is heading to South Korea and Japan in September and Lt. Gov. Kim Reynolds is going to Brazil later this month.

Branstad also wants the president of China to visit Iowa again this year as state leaders work to build on a record $15.1 billion export year.

The governor used his weekly news conference Monday to announce that he and Reynolds will lead trade missions to South Korea and Brazil, respectively, with both trips aimed at expanding trade and investment opportunities.

'We have reaped benefit from previous trade missions and look forward to building on the foundations we have laid in the past,” Branstad said in making the announcement. 'Trade missions like this one allow Iowa companies to expand their export markets outside of the U.S. and ultimately create more jobs here at home.”

The trade mission trips are being coordinated by the Iowa Economic Development Authority, and travel expenses for Branstad and Reynolds will be financed by private donations to the Iowa Economic Development Authority Foundation. Representatives from private businesses who make the trips will pay for their own expenses, Branstad said.

IEDA Director Debi Durham noted that more than 448,000 jobs are supported by trade. She said trade missions led by Iowa's top elected officials will 'open doors” by helping accelerate the growth of trade to vital export markets, likely leading to direct foreign investment in Iowa.

The Brazil mission will take place from April 25 to May 2, with planned stops in Sao Paulo and Ribeirão Prêto.

The South Korea mission is scheduled for Sept. 7-13, with Seoul being the primary destination for this mission. The Iowa governor will travel to Tokyo after the South Korean visit to attend the annual Midwest U.S.-Japan Association conference.

Highlights for both missions include exploring foreign direct investment opportunities, meetings with government and industry association officials, briefings on each market, and Growing Iowa's Global Partnerships events, according to the governor's office. Iowa companies will participate in meetings specific to their market entry or expansion needs.According to EDA officials, Iowa's exports have increased by nearly 39 percent, from $10.8 billion in 2011 to $15.1 billion last year. Brazil is Iowa's fifth-largest trading partner, with exports exceeding $500 million in manufactured and value-added goods in 2014. South Korea is Iowa's ninth-largest export destination, with exports close to $367 million in manufactured and value-added goods during the same period.

'With 95 percent of the world's population and 80 percent of the world's purchasing power existing outside the United States, there's an enormous potential to make an immediate and substantial impact on Iowa's economy by expanding our trade and investment partnership,” Branstad said.

Iowa's rosy export numbers were in contrast to a U.S. Bureau of Economic Analysis report last month that placed Iowa near the bottom for personal income growth.

The state's total personal income grew to $140.17 billion in 2014, which was up 1.3 percent from $138.3 billion in 2013 - a level that ranked 49th among all 50 states, according to the U.S. Bureau of Economic Analysis report. The bureau attributed the slower income growth to declining farm earnings.

Also during Monday's news conference, Branstad indicated he has invited Chinese President Xi Jinping 'through the appropriate channels” to make a return trip to Iowa after his 2012 visit, and the governor indicated he also plans to make a return trip to China later this year. Branstad said the Chinese president is slated to make a return U.S. trip this year, and he has asked Xi to schedule another visit to Iowa as part of his itinerary.

Xi's connection to Iowa dates back to 1985, when he was a Hebei provincial official and director of the Shijiazhuang prefecture feed association and visited Iowa as part of a sister state/province program. He stayed with a family in Muscatine and met Branstad at his formal Statehouse office as part of a visiting delegation.

'When the president of China calls you an old friend, it's not a bad deal,” the Iowa governor told reporter Monday.