BILL ANALYSIS �
AB 2713
Page 1
ASSEMBLY THIRD READING
AB 2713 (Quirk-Silva)
As Amended May 5, 2014
Majority vote
ECONOMIC DEVELOPMENT 7-0 APPROPRIATIONS 17-0
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|Ayes:|Medina, Mansoor, Campos, |Ayes:|Gatto, Bigelow, |
| |Daly, Fong, Fox, V. | |Bocanegra, Bradford, Ian |
| |Manuel P�rez | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes the Governor's Office of Business and
Economic Development (GO-Biz) to establish public-private
partnerships to help guide state activities related to the
export of California products and the attraction of
employment-producing foreign investment. The bill requires the
establishment of a subaccount to hold private donations for
county and industry-specific marketing activities. The bill
also requires the establishment of a partnership to support
California trade and investment within South Korea.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, implementation of this measure will result in
approximately $100,000 in costs to GO-Biz to establish a
public-private partnership.
COMMENTS : This bill directs GO-Biz to establish public-private
partnerships to help support and guide expansion of California
trade and investment with the state's largest trade partners and
among its key industry sectors. This bill is consistent with
the state's International Trade and Investment Strategy
including the goals and activities related to engagement with
private and other public sector stakeholders, implementation of
a more proactive outreach agenda, and development of an
interactive Web site to assist California companies wanting to
export and attract foreign investment.
AB 2713
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In deliberating the merits of the measure, Assembly Members may
wish to consider the importance of trade within the California
economy and the potential opportunities of a focused trade
work-group to leverage opportunities that may arise from
existing and future United States (U.S.) trade agreements
including, the Trans-Pacific Partnership. The policy committee
analysis includes additional information on the California trade
economy and related legislation.
U.S. Trade Agreements
Within a globally connected economy, trade agreements create the
framework by which a significant number of businesses and
workers must compete, collaborate, and create economic value.
The U.S. is currently negotiating two major trade promotion
agreements, the Trans-Pacific Partnership and the Transatlantic
Trade and Investment Partnership. In their current iterations,
these trade agreements will cover 21% of the world's population,
with the U.S. at the nexus. These agreements are especially
important to local and regional governments which have been
proactive in using trade promotion activities as a springboard
for their own economic program.
The U.S. has trade agreements in force with 20 countries,
including Australia, Bahrain, Canada, Chile, Colombia, Costa
Rica, Dominican Republic, El Salvador, Guatemala, Honduras,
Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama,
Peru, and Singapore. In addition to trade agreements, the U.S.
maintains a number of trade preference programs that allow
special access to U.S. markets for countries that are considered
developing markets and/or where the U.S. wants to cultivate a
stronger relationship.
The most recently approved U.S. trade agreement is the
Korea-U.S. Free Trade Agreement, which was ratified by the U.S.
and South Korea in 2011 and went into force in March 2012. The
U.S. International Trade Commission estimated that the reduction
of South Korean tariffs and tariff-rate quotas on goods would
add $10 billion to $12 billion to annual U.S. gross domestic
product and up to $11 billion in annual merchandise exports to
South Korea. The agreement was also expected to support tens of
thousands of American jobs.
AB 2713
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California's Trade Economy
International trade and foreign investment serve as critical
components of California's $2 trillion economy. If California
were a country, it would be the 17th largest exporter and the
14th largest importer in the world. Merchandise exports from
California ($168 billion) accounted for over 10.6% of total U.S.
exports in goods, shipping to over 220 foreign destinations in
2013. California's land, sea, and air ports of entry served as
key international commercial gateways for the $538 billion in
products entering and exiting the U.S. in 2012. Statewide, 4.4
million California jobs are dependent on foreign trade. Over
562,700 California workers benefit from jobs with foreign-owned
firms, which accounts for 5.1% of all private sector jobs in the
state. Mexico is California's top trading partner, receiving
$23.9 billion (14%) in goods in 2013. The chart below shows
export data on the state's top five trade partners.
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| California Export based on Movement of Goods 2012 and 2013 |
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|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| Rank | Country | 2012 Value | 2013 Value | 2012 % Share | 2013 % Share | % Change, |
| | | | | | | 2012 - 2013 |
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| --- |Total | 161,880| 168,128| 10.5| 10.6|3.9 |
| |CALIFORNIA | | | | | |
| |Exports and % | | | | | |
| |Share of U.S. | | | | | |
| |Total | | | | | |
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| --- |Total, Top 25 | 143,671| 149,020| 88.8| 88.6| 3.7|
| |Countries and | | | | | |
| |% Share of | | | | | |
| |State Total | | | | | |
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| 1 |Mexico | 26,370| 23,933| 16.3| 14.2| -9.2|
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| 2 |Canada | 17,424| 18,819| 10.8| 11.2| 8.0|
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| 3 |China | 13,970| 16,359| 8.6| 9.7| 17.1|
|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| 4 |Japan | 13,033| 12,711| 8.1| 7.6| -2.5|
AB 2713
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|--------------+--------------+--------------+--------------+--------------+--------------+--------------|
| 5 |South Korea | 8,246| 8,394| 5.1| 5.0| 1.8|
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|Source: tradeport.org |
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Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0003441