The Akron Legal News

Proposed program designed to increase Ohio's exports

TIFFANY L. PARKS
Special to the Legal News
Published: May 28, 2015

In pushing for the passage of House Bill 175, Rep. John Barnes Jr. said lawmakers must continuously work to build on the economic successes of the past by creating new paths of opportunity for the future.

“Ohio is the seventh largest economy in the United States and 22nd largest in the world,” he said.

“It is extremely important based on our position in the global economy system, that we develop approaches that establish Ohio’s international economic posture that will help with the exportation of products and services, manufacturing and new business attraction.”

HB 175 would establish the Access to Global Market Opportunities for Ohio Manufactured Products Program.

Barnes, D-Cleveland, said the venture would promote trade and industrial development, attract foreign investment, facilitate the use of ports and pursue other trade and development related objectives.

“We need to continue to encourage executive and legislative efforts to promote Ohio’s economy and diplomacy to the international community, and to align our government, market and industry forces to increase access to global market opportunities in order to enhance their competitive advantage in world markets and promote job creation in Ohio,” he said.

There are seven goals for the program noted in proposed legislation, which is before the House Economic and Workforce Development Committee.

Among the goals is facilitating logistics for Ohio businesses seeking to use foreign ports and for foreign businesses seeking to use Ohio ports and enhancing development of the state’s chief 25 industries.

Also, promoting reciprocal trade activities, such as trade shows; holding annual, industry-sponsored receptions in the U.S. capital for government and business representatives from key foreign nations; enhancing and promoting Ohio’s industry of partial manufacturing; attracting foreign investment; and engaging in educational exchange.

The program would have two components: the Ohio Global Leadership Initiative and the Global Initiative on International Relations.

The Ohio Global Leadership Initiative would be under the umbrella of the Ohio Development Services Agency.

Barnes said the initiative would build models of opportunity to facilitate Ohio business’ entry or expansion into foreign markets.

The development services director would be required to designate Ohio business consulates.

“The role of these consulates is to assist Ohio businesses in creating relationships, promoting their business and conducting transactions in foreign markets,” Barnes said, adding that consulates would not be employees or agents of the state and would not receive state compensation for their services.

According to a bill summary, consulates would be selected from among members of Ohio District Export Councils.

DECs are organizations of business leaders appointed by various U.S. secretaries of commerce to promote economic health and create new, higher-paying jobs by assisting small and medium-sized businesses to establish or increase export sales.

There are two DECs in Ohio, each has approximately 30 members.

The second component, the Global Initiative on International Relations, would serve to advance and promote Ohio’s education, economy, diplomacy, humanity and legislative initiatives and build and manage reciprocal relationships with foreign governments as is consistent with the new integrated principle of the global economy.

The bill calls for the relations initiative to include 20 or more people appointed as Ohio ambassadors by the president of the Ohio Senate and speaker of the Ohio House.

The ambassadors would not be paid for their work but could be reimbursed for reasonable expenses.

Expense reimbursement would be made from the Ohio Ambassador Fund, established by the bill. The bill would appropriate $100,000 to the fund for the 2016 fiscal year.

HB 175 also would require the development services director to publish a booklet listing businesses in Ohio that could be suppliers to international markets, arranged according to each industry’s industry classification.

The booklet would be published and updated as often as the director finds appropriate.

The director would be permitted to charge fees of each business requesting to be listed in the booklet to cover publishing costs.

If such fees exceed the costs of publication, the surplus may be funneled to the ambassador fund.

“HB 175 will contribute significantly to advancing the interests of our small businesses by opening up new and untapped markets, enhancing their competitive advantage in world markets and promoting job creation in Ohio,” Barnes said.

“In this globally interconnected economy, we must come together and work together in order to build a better tomorrow for our economy and job creation by advancing the footprint of the state of Ohio globally.”

HB 175 has not been scheduled for additional hearings.

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