Kempthorne Announces 2005 Idaho Exports Exceed $3.2 Billion

KEMPTHORNE ANNOUNCES 2005 IDAHO EXPORTS EXCEED $3.2 BILLION

China Becomes Top Trading Partner

Governor Dirk Kempthorne today announced that exports of the state's goods and services in 2005 exceeded $3.2 billion and that China has become the state's top trading partner for the first time.

Riding another significant wave in sales of Idaho's high tech products, 2005 marks the second time state exports topped $3 billion. In 2000, export sales topped $3.5 billion.

"We have been aggressive in our efforts to expand opportunities for Idaho businesses and these numbers reflect our great success story in our continued efforts to sell Idaho goods and services around the world," Kempthorne said. "Our trade missions to Asia and Mexico have opened doors for Idaho exports and built relationships that are producing amazing results."

International demand for computer chips and agriculture products made China, including Hong Kong, Idaho's top trading partner for the first time, with purchases in 2005 reaching $554.5 million. The last time an Asian nation was the state's top trading partner was 1997 when Japan purchased nearly $327 million in goods.

Since then, Canada and the United Kingdom have traded the top position among Idaho's international trading partners. Canada was second in 2005, and the United Kingdom was third.

"With one of every 10 jobs linked to exports, a 12 percent increase in international sales played a key role in Idaho's strong economic performance in 2005," Idaho Commerce & Labor Director Roger B. Madsen said. "The rise of China reinforces the importance of our investment in Asia and Governor Kempthorne's plan to increase our financial commitment."

China and several other Asian countries have been a major focus of Governor Kempthorne's trade missions. Since taking office in 1999, Kempthorne has led three trade missions to Asia and four to Mexico.

"The Legislature's support of our international trade offices has a significant impact on Idaho's exports," Madsen said.

Idaho has trade offices in Shanghai, China; Taipei, Taiwan; Guadalajara, Mexico and a representative office in South Korea. Idaho currently has no representative in Japan and the state's representation in China is limited.

In 1996, Idaho sales to China totaled $62 million. With only a modest investment in export promotion in China - just $24,000 this year - those sales increased nine times in a decade and 40 percent from 2004.

To continue to increase Idaho exports, Governor Kempthorne is asking the Legislature for a $300,000 budget increase to bolster Idaho Commerce & Labor's export activities, which would be used to finance a part-time office in Japan and increase the state's promotional presence in Shanghai, China. The Governor's budget also includes a $30,000 budget increase for the Idaho State Department of Agriculture to improve trade services in Mexico, a key buyer of Idaho agriculture products.

"Central to our ongoing success are the Idaho trade offices located in key international markets," Kempthorne said during his State of the State address on January 9. "Idaho is open for business, here and around the world."

Asian nations continue to represent seven of the state's top 10 trading partners in 2005, accounting for 56 percent of all export sales. Currently, there are 57 countries that purchase more than $1 million in Idaho exports.

Nearly 72 percent of Idaho's international sales last year involved high technology products, primarily integrated circuits, and high-tech sales accounted for nearly 90 percent of Idaho's business with China. And while high technology goods drove exports again in 2005, significant declines in high-tech purchases were responsible for overall exports falling in Britain, Singapore and the Philippines.

One of Idaho's largest export gains was in the sales of railway and traffic signal equipment, which saw exports increase from $6.9 million in 2004 to nearly $44.4 million in 2005 - a 540 percent increase.

A number of food and agricultural goods saw export increases including a more than 15 percent increase in vegetables, grains, seeds and fruit and a nearly 30 percent increase in dairy, eggs and honey. Overall, international sales of food and agricultural goods dipped slightly from $339 million in 2004 to $333 million in 2005.

"The success we're having in China is a direct result of Governor Dirk Kempthorne's trade missions," Idaho State Department of Agriculture Director Pat Takasugi said. "He has opened so many opportunities for Idaho agriculture. From the governor's efforts, the industry benefits, and so does the state's economy."

Idaho products moving into the export market last year went well beyond high technology and agriculture and included everything from synthetic fiber, clocks and ceramic statuettes to woven caps, accordions and motorboats.

http://gov.idaho.gov/mediacenter/press/pr06/prfeb06/Pr_017.htm