International Trade and the Golden Triangle

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International Trade and the Golden Triangle

  1. 1. <ul><li>Amir Mirabi </li></ul><ul><li>Manager - International Business </li></ul><ul><li>Office of the Governor - State of Texas </li></ul><ul><li>Port Arthur Small Business Summit </li></ul><ul><li>Port Arthur, Texas </li></ul><ul><li>28 Oct 2009 </li></ul>Texas – Leader in the Global Economy
  2. 2. The Global Economy – Turmoil ? <ul><li>The Bad & Ugly </li></ul><ul><li>Global economy has taken a severe hit - worst since WWII </li></ul><ul><ul><ul><ul><li>World trade down 10 percent </li></ul></ul></ul></ul><ul><ul><ul><ul><li>US exports down 18 percent </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Texas exports down 17 percent </li></ul></ul></ul></ul><ul><li>“ Economic Flu” has hit all sectors & all nations in varying strains </li></ul><ul><ul><ul><ul><li>Demand contraction has dealt a harsh blow </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Unemployment plagues many </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Credit is tight - limits spending </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lessons </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contagion validates integrated economies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Globalization is here to stay & more critical than ever </li></ul></ul></ul></ul>Sources: WorldBank / Texas State Comptroller of Public Accounts / Federal Reserve Bank (Dallas)
  3. 3. The Global Economy – or Turnaround ? Sources: Kauffmann Foundation / Federal Reserve Bank (Dallas) / Moody’s Economy <ul><li>The Good </li></ul><ul><li>Massive/unorthodox US & foreign monetary stimulus has spurred growth </li></ul><ul><li>Financial markets have stabilized </li></ul><ul><li>Wage and price inflation are subdued </li></ul><ul><li>Timing & speed of recovery is varying </li></ul><ul><ul><ul><ul><li>Asia leading recovery </li></ul></ul></ul></ul><ul><ul><ul><ul><li>US in first stages of recovery </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Europe lagging </li></ul></ul></ul></ul><ul><li>Some nations & states more resilient than others </li></ul><ul><ul><ul><ul><li>Texas has a strong economic umbrella </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Driven largely by exports </li></ul></ul></ul></ul><ul><li>Among US states, Texas has been at the forefront of globalization </li></ul><ul><ul><ul><ul><li>Ranked #2 most globalized state </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Houston & Dallas top 10 most international cities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Beaumont & Austin top 25 </li></ul></ul></ul></ul>
  4. 4. Source: Atkinson, Robert D. and Daniel K. Correa. “ The 2007 State New Economy Index: Benchmarking Economic Transformation in the States.” Kauffman Foundation and The Information Technology &Innovation Foundation The Global Economy – A Paradigm Shift Issue Old New Markets Stable Dynamic Scope of Competition National Global Organizational Form Hierarchal Networked Production System Mass Production Flexible Production Key Factor of Production Capital/Labor Innovation/Ideas Key Technology Driver Mechanization Digitization Competitive Advantage Economies of scale Innovation/Quality Relations Between Firms Go it alone Collaborative Skills Job-Specific Broad and Changing Workforce Organization Man “ Intrapreneur” Nature of Employment Secure Risky
  5. 5. <ul><li>Texas Ports Facts </li></ul><ul><li>Realities </li></ul><ul><ul><li>Texas port activity has grown 2x as fast as US in last 10 years </li></ul></ul><ul><ul><li>317 million metric tons of cargo annually </li></ul></ul><ul><ul><li>17% of total US tonnage </li></ul></ul><ul><ul><li>50% of all US foreign imports & exports </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Nearly 1 million jobs in Texas </li></ul></ul><ul><ul><li>$30+ billion in personal income for Texans </li></ul></ul><ul><ul><li>Business sales of $178 billion </li></ul></ul><ul><ul><li>Texas marine & intermodal transport account for $65 billion </li></ul></ul>Sources: Texas Ports Association / Federal Reserve Bank (Dallas) Texas Ports – Creating Statewide Strength
  6. 6. <ul><li>A Key Economic Component </li></ul><ul><li>Texas is the largest exporting state in US - 7 th year in a row - $192 billion </li></ul><ul><li>Compared to US, Texas exports larger share of its output: 15% TX vs. 8% US </li></ul><ul><li>Compared to US, Texas jobs are more export-reliant and related: </li></ul><ul><ul><ul><li>Overall - 6.7% TX vs. 5.1% US </li></ul></ul></ul><ul><ul><ul><li>Manufacturing jobs - 23% TX vs. 20% US </li></ul></ul></ul><ul><ul><ul><li>Computer & Electronics jobs – 48% TX vs. 35% US </li></ul></ul></ul><ul><li>Diverse & Dynamic </li></ul><ul><ul><ul><li>Chemicals – S38.3 billion </li></ul></ul></ul><ul><ul><ul><li>Computers & Electronics – $35.2 billion </li></ul></ul></ul><ul><ul><ul><li>Machinery Manufactures - $27.3 billion </li></ul></ul></ul><ul><ul><ul><li>Petrochemicals & Coal-related products – $25.3 billion </li></ul></ul></ul>Source: Federal Reserve Bank (Dallas) Texas Exports – Making Texas Strong
  7. 7. Source: Federal Reserve Bank (Dallas) Texas Exports – Output Levels
  8. 8. Source: Federal Reserve Bank (Dallas) Texas Exports - Composition
  9. 9. Source: Federal Reserve Bank (Dallas) Texas Exports - Destination
  10. 11. Texas: The Business Capital <ul><li>Texas has most Fortune 500 & 1000 HQ’s of any state - 64 & 113 companies </li></ul><ul><li>Texas ranked #1 for Corporate Site Selectors by Site Selector Magazine - 2008 </li></ul><ul><li>Texas ranked as “Number One Place for Business ” by CNBC – 2008 </li></ul><ul><li>Texas home to most 2008 Hispanic Business 100 of any state – 23 companies </li></ul><ul><li>Texas won Forbes Magazine “Best Cities for Jobs” - Houston, Austin, Ft. Worth </li></ul><ul><li>T exas won Fortune Magazine’s Nation’s 2008 100 Fastest-Growing Firms list </li></ul><ul><ul><ul><li>25 companies in Texas vs. 18 in California </li></ul></ul></ul><ul><li>Texas chosen by Chief Executive Magazine as “ Best Place for Business ” – </li></ul><ul><ul><ul><li>4 th year in a row (2005-2008) </li></ul></ul></ul><ul><li>Texas picked as 2007 “ State of the Year ” by Business Facilities Magazine </li></ul><ul><li>Texas home to 3 Major US Airlines – Continental, American and Southwest </li></ul><ul><li>Texas produced 1.29 million jobs in the last 5 years – #1 in US </li></ul>Source: Texas State Comptroller of Public Accounts
  11. 12. <ul><li>“ Texas has established a worldwide reputation for its open, positive attitude toward the business community. With a low tax burden, low living costs and government programs designed to help rather than hinder business, Texas is the perfect location for international companies.” – Gov. Perry </li></ul>Texas: The Investment Capital <ul><ul><li>T exas leads US in total FDI with ~ $85+ billion invested in last 5 years (2003-2008) </li></ul></ul><ul><ul><li>2007 FDI into Texas was $11.8 billion creating nearly 5,500+ new jobs </li></ul></ul><ul><ul><li>Texas leads US in EU Commercial Property Investments ~ $51 billion </li></ul></ul><ul><ul><li>Texas ranked 49 th among states in its per capita state tax burden </li></ul></ul><ul><ul><ul><ul><li>No State Income Tax / No Corporate Tax </li></ul></ul></ul></ul><ul><li>Texas had 3 rd lowest cost of living among states in 2008 </li></ul><ul><li>Texas Ports handle nearly 51% of all US foreign imports & exports </li></ul><ul><li>Texas has largest US rail system (23,337 km) and largest road system (671,594 km) </li></ul><ul><ul><ul><li>More than 2x the size of California with 11,774 km in rail / 374,638 km in roads </li></ul></ul></ul><ul><li>Texas has most Ports of Entry than any other state – 28 total </li></ul><ul><ul><ul><li>Florida & N. Dakota tied for #2 with 22; California #3 with 21 </li></ul></ul></ul>Source: Texas State Comptroller of Public Accounts
  12. 13. <ul><li>Texas top 3 in nation for total business & academic R&D - $15.86 billion </li></ul><ul><li>Texas top 3 in nation for science Ph.D.’s awarded – 1,930 doctorates </li></ul><ul><li>Between 2000-2008, Texas’ population grew more than 2x the US rate </li></ul><ul><ul><li>14.6 percent (Texas) versus 7.2 percent (US) </li></ul></ul><ul><li>Texas has 5th-youngest workforce in the US, with a median age of 39.4 years </li></ul><ul><li>45,000+ college-graduate workers moved from other states to Texas in 2007-8 </li></ul><ul><li>Texas has 2x the US average of fully bilingual professionals in the workforce </li></ul>Texas: The Human Capital Source: Texas State Comptroller of Public Accounts
  13. 14. <ul><li>Texas ranks 2 nd for semiconductor manufacturing </li></ul><ul><li>Texas firms attracted $1.4 billion in venture capital for 2007 </li></ul><ul><ul><li>Nearly half - $684.3 million – allocated to Austin-based firms </li></ul></ul><ul><li>Texas ranked 3 rd for number of investments into venture-backed companies </li></ul><ul><li>Texas ranked 2 nd for number of patents issued – 6,016 awarded </li></ul><ul><li>Texas has 900+ biotech and biomed firms representing nearly 29,000 workers </li></ul><ul><li>The world’s largest Medical Center is in Houston </li></ul><ul><ul><li>46 hospitals and universities – 12,000+ doctors - 75,000+ employees </li></ul></ul>Texas: The Innovation Capital Source: Texas State Comptroller of Public Accounts
  14. 15. <ul><li>“ Texas is blessed with an abundance of technical, legal, financial and research expertise that can be deployed to meet the challenges of providing energy for a growing population and economy.” </li></ul><ul><li>Energy industry accounts for ~ 17% of the Gross State Product </li></ul><ul><li>Texas is the nation’s largest producer of energy </li></ul><ul><ul><ul><li>Accounts for 21.3% of total oil and 27.8% of total US gas production </li></ul></ul></ul><ul><li>Texas has ~ 24% of all US oil reserves and ~ 32% of all US gas reserves </li></ul><ul><li>Texas’ 23 refineries account for ~ 26% of all US refining capacity </li></ul><ul><li>Texas leads US in all renewable energies with largest wind generation capacity </li></ul><ul><ul><ul><li>Currently producing 27% of the national total renewable energy capacity </li></ul></ul></ul><ul><ul><ul><li>Enough renewable energy to power over 1.5 million Texas homes </li></ul></ul></ul>Texas: The Energy Capital Source: Texas State Comptroller of Public Accounts
  15. 16. <ul><li>Texas leads US with largest solar, wind and renewable energy capacity </li></ul><ul><ul><li>Produces almost 2x the amount of California as a whole </li></ul></ul><ul><ul><li>#1 in Wind - producing nearly 3x as much wind energy as #2 Iowa and #3 California </li></ul></ul><ul><li>Texas leads US with biomass, landfill and plant-derived fuel production </li></ul><ul><ul><li>75+ trillion BTU of biomass energy </li></ul></ul><ul><li>Texas is the nation’s largest producer of “biodiesel” </li></ul><ul><ul><li>187 million gallon capacity per annum / 73 million produced in 2007 </li></ul></ul><ul><li>Recent Renewable Energy Generation Statistics (Megawatt Hours) </li></ul><ul><ul><ul><li>Wind 7,907,000 MWh </li></ul></ul></ul><ul><ul><ul><li>Wood & Derived Fuels 900,888 MWh </li></ul></ul></ul><ul><ul><ul><li>Hydropower 661,971 MWh </li></ul></ul></ul><ul><ul><ul><li>Landfill Mass 218,813 MWh </li></ul></ul></ul><ul><ul><ul><li>Biomass 43,516 MWh </li></ul></ul></ul>Texas: The Renewables Capital Source: Texas State Comptroller of Public Accounts
  16. 17. <ul><li>“ Texas is a hub for world trade, linking North, South, East and West – </li></ul><ul><li>an ideal location for international commerce” </li></ul><ul><li>2008 Texas GSP is $1.245 Trillion - Up 4.2% from 2007 vs. 1.9% for US </li></ul><ul><ul><ul><ul><li>Represents 12 th largest economy in the world </li></ul></ul></ul></ul><ul><li>Texas is the leading exporter in the USA - 7 th year in a row </li></ul><ul><li>Texas exports swelled from $168.2 billion in FY07 to $192.14 billion in FY08 </li></ul><ul><ul><ul><ul><li>California a distant second with $144.8 billion </li></ul></ul></ul></ul><ul><li>Chemicals were Texas’ most important export - $38 billion </li></ul><ul><ul><ul><ul><li>Computers and Electronics 2 nd most important export - $35 billion </li></ul></ul></ul></ul><ul><li>Foreign-owned firms directly employ 368,200 Texans </li></ul><ul><ul><ul><ul><li>EU countries directly employ 198,000 Texans </li></ul></ul></ul></ul>Texas: The Trade Capital Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  17. 18. <ul><li>Bi-Lateral trade between Texas and the World ~ $522 billion </li></ul><ul><li>Export trade with the following countries: </li></ul><ul><ul><ul><ul><ul><li> 2007 2008 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Mexico $56.0 billion $62.1 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Canada $16.9 billion $19.2 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>China $8.27 billion $8.45 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>South Korea $5.56 billion $5.16 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Netherlands $5.29 billion $7.06 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Taiwan $5.08 billion $3.88 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Singapore $4.52 billion $5.46 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brazil $3.90 billion $5.96 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Japan $3.44 billion $3.63 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>U.K. $3.27 billion $3.54 billion </li></ul></ul></ul></ul>Texas: Trade with the World Source: US Department of Commerce
  18. 19. <ul><li>“ Bi-Lateral trade is an essential part of our </li></ul><ul><li>national and local economies” </li></ul><ul><li>Did you know: </li></ul><ul><ul><li>International trade generates nearly 30% of US GDP </li></ul></ul><ul><ul><li>95% of retail and commercial consumers live outside of the US </li></ul></ul><ul><ul><li>97% of US exporters are SMEs, and exports directly support over 12 million jobs in the US and support millions more indirectly </li></ul></ul><ul><ul><li>Imports keep inflation low and expand consumer choice and quality </li></ul></ul><ul><ul><li>Foreign companies in the US directly employ 5.1 million Americans and support millions more indirectly </li></ul></ul>Benefits of International Trade Source: US Chamber of Commerce
  19. 20. <ul><li>Trade Means Jobs </li></ul><ul><ul><li>Global demand for $192+ billion in Texas-produced goods directly generates nearly 500,000 jobs </li></ul></ul><ul><ul><li>Export-supported employment related to manufactured goods accounts for nearly 1 of every 18 private sector jobs in Texas </li></ul></ul><ul><ul><li>Over 30,000 businesses in Texas sell their products overseas - and they all employ Texans ! </li></ul></ul><ul><ul><li>92% of Texas businesses that export are SME’s </li></ul></ul><ul><ul><li>There are over 350,000 Texans employed by foreign companies </li></ul></ul><ul><ul><ul><ul><ul><li>EU-Affiliated firms alone employ nearly 200,000 Texans </li></ul></ul></ul></ul></ul>What International Trade Means to Texas Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  20. 21. <ul><li>Trade Means Revenue </li></ul><ul><ul><li>Sales revenue generates jobs and supplements the state tax base, which funds community assets like roads and schools </li></ul></ul><ul><ul><li>$128.8 billion in Texas manufactured goods - representing ~15% of the total state economy - are exports </li></ul></ul><ul><ul><li>FDI into Texas in 2007 was $11.8 billion directly creating nearly 5,000+ new jobs </li></ul></ul><ul><ul><li>Total FDI into Texas over the past five years ~$85+ billion </li></ul></ul><ul><ul><li>Texas leads US in EU Commercial Prop. Investments ~$51 billion </li></ul></ul>What International Trade Means to Texas Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  21. 22. <ul><li>“ As a hub for world trade, Texas links North and South, East and West serving as an ideal location for international commerce and a major center for foreign investment” </li></ul><ul><li>From 2001-2007, Texas exports to Latin America rose by 49.2 percent to $73.2 billion in 2007 </li></ul><ul><li>Texas imported $245.2 billion in products from other nations in 2006 </li></ul><ul><ul><ul><li>Mexico accounted for more than half of that amount, at $124.0 billion </li></ul></ul></ul><ul><li>U.S. affiliates of Latin American companies employed 50,000+ Texans, including 15,000 Texas manufacturing jobs </li></ul><ul><li>LatAm accounted for 9 percent of total Texas FDI or ~$7.5 billion </li></ul><ul><ul><ul><li>$346 million in commercial properties </li></ul></ul></ul>Texas: Gateway to Latin America Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  22. 23. <ul><li>“ As a hub for world trade, Texas links North and South, East and West serving as an ideal location for international commerce and a major center for foreign investment.” </li></ul><ul><li>From 2001-2007, Texas exports to China rose by 424.3 percent to $8.3 billion in 2007 </li></ul><ul><li>Texas imported $245.2 billion in products from other nations in 2006 </li></ul><ul><ul><ul><li>China ranked second as importer with $15.9 billion in imports </li></ul></ul></ul><ul><li>U.S. affiliates of Asia-Pac companies employed 42.000+ Texans </li></ul><ul><li>Asia-Pac accounted for 14 percent of total Texas FDI or ~$11.8 billion </li></ul><ul><ul><ul><li>$1.9 billion in commercial properties </li></ul></ul></ul>Texas: Gateway to Asia Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  23. 24. <ul><li>Common Misconceptions </li></ul><ul><ul><li>Company has to be large </li></ul></ul><ul><ul><li>Company must have an in-house legal , marketing & export dept’s </li></ul></ul><ul><ul><li>Company must have substantial trade volume </li></ul></ul><ul><ul><li>Company officials must be fluent in foreign languages </li></ul></ul>What are the Common Exporter Mistakes?
  24. 25. <ul><li>Making the Export Decision </li></ul><ul><ul><li>Obtain qualified export counseling and develop a master international strategy and marketing plan </li></ul></ul><ul><ul><li>Sufficient commitment by top management </li></ul></ul><ul><ul><li>Concentrate on one or two geographical areas and establishing a basis for profitable operations and orderly growth </li></ul></ul><ul><ul><li>Sufficient care in selecting overseas sales and public relations representatives and distributors </li></ul></ul><ul><ul><li>Do Not Assume that a given market technique and product will be successful in all countries </li></ul></ul><ul><ul><li>Must be willing to modify products to meet regulations or cultural preferences of other countries </li></ul></ul><ul><ul><li>Consider the possibility of appointing an export and marketing management company </li></ul></ul>The ‘How’ of Exporting
  25. 26. <ul><li>Best Practices of Successful Exporters </li></ul><ul><ul><li>Select Attractive Markets </li></ul></ul><ul><ul><li>Leverage US Customer Relationships </li></ul></ul><ul><ul><li>Select Partners (Distributors, Reps, Agents, etc.) </li></ul></ul><ul><ul><li>Understand Culture and Invest in Personal Relationships </li></ul></ul><ul><ul><li>Protect Intellectual Property </li></ul></ul><ul><ul><li>Reduce Payment Risk </li></ul></ul>How Texas Companies Achieve Success
  26. 27. <ul><ul><li>The Governor’s Office of Economic Development & Tourism functions as the lead state agency for economic development working in partnership with businesses and local communities to promote economic prosperity and job growth for Texas </li></ul></ul><ul><ul><li>Our customers are the citizens of Texas, economic development and tourism organizations, businesses, communities, gov’t entities and elected officials </li></ul></ul><ul><ul><li>Financial incentive packages are custom-designed to meet the needs of both the company and community </li></ul></ul><ul><ul><li>CEOs and top-level executives work with Governor’s Office to negotiate future business expansion and relocation prospects </li></ul></ul>Texas Governor’s Office - EDT
  27. 28. <ul><li>The Office of International Business provides the following: </li></ul><ul><ul><li>Trade Shows, Events and Missions </li></ul></ul><ul><ul><li>Export Counseling & Advocacy </li></ul></ul><ul><ul><li>Collection and Dissemination of Trade Leads </li></ul></ul><ul><ul><li>Trade-Related Market Research and Analysis </li></ul></ul><ul><ul><li>State of Texas - Mexico Office </li></ul></ul>How the Governor’s Office Assists
  28. 29. <ul><li>US Commercial Service </li></ul><ul><ul><li>Mission is to promote the export of goods & services from the US to foreign markets </li></ul></ul><ul><ul><li>158 Offices worldwide / 108 Export Assistance Centers in US – 7 in Texas </li></ul></ul><ul><ul><li>Assistance with: </li></ul></ul><ul><ul><ul><ul><ul><li>Market Research & Advocacy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Export Licensing & Documentation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Product Standards & Compliance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Tariffs, Taxes & Rate Schedules </li></ul></ul></ul></ul></ul>Who Texas Partners With
  29. 30. <ul><li>Other Partners </li></ul><ul><ul><li>DECs (District Export Councils) – 4 in Texas </li></ul></ul><ul><ul><li>USDA Foreign Agricultural Service </li></ul></ul><ul><ul><li>EXIM (Export-Import) Bank </li></ul></ul><ul><ul><li>OPIC (Overseas Private Investment Corporation) </li></ul></ul><ul><ul><li>SBDC Network (Small Business Development Centers) </li></ul></ul><ul><ul><li>ITC (International Trade Centers) </li></ul></ul><ul><ul><li>Local Chambers of Commerce / City Offices </li></ul></ul><ul><ul><li>Congressional Offices / Consulates </li></ul></ul>Who Texas Partners With
  30. 31. <ul><li>EXIM Bank http:// www.exim.gov </li></ul><ul><li>Small Business Administration http:// www.sba.gov </li></ul><ul><li>US Customs http:// www.customs.ustreas.gov </li></ul><ul><li>US Dept. of State http:// www.state.gov </li></ul><ul><li>Overseas Private Investment Corporation http:// www.opic.gov </li></ul>Helpful Websites
  31. 32. <ul><li>United States Department of Commerce http://www.us-doc.gov </li></ul><ul><li>US Commercial Service http:// www.buyusa.gov </li></ul><ul><li>District Export Councils http:// www.exporttexas.com </li></ul><ul><li>Office of the Governor http:// www.texasone.us </li></ul>Helpful Websites
  32. 33. <ul><li>Texas Enterprise Fund </li></ul><ul><li>Emerging Technology Fund </li></ul><ul><li>Texas Enterprise Zone Program </li></ul><ul><li>Texas Capital Fund Infrastructure Program </li></ul><ul><li>Texas Capital Fund Real Estate Development Program </li></ul><ul><li>Rural Municipal Finance Program </li></ul><ul><li>State Sales and Use Tax Exemptions </li></ul><ul><li>Texas Industry Development Program </li></ul><ul><li>Texas Leverage Fund </li></ul><ul><li>Texas Economic Development Act </li></ul><ul><li>Ad Valorem/Property Tax Exemption </li></ul><ul><li>Economic Development Refund </li></ul><ul><li>Renewable Energy Incentives </li></ul><ul><li>Moving Image Industry Incentive Program </li></ul>State Incentives & Programs
  33. 34. <ul><li>$377+ million in funds appropriated </li></ul><ul><ul><li>Deal closing fund </li></ul></ul><ul><ul><li>Jobs driven - Wages should exceed county average salary </li></ul></ul><ul><ul><li>Repayment formula based on sales tax generated from wage expenditures </li></ul></ul><ul><ul><li>Substantial job creation and high wages (usually 100+ jobs) </li></ul></ul><ul><ul><li>Significant capital investment </li></ul></ul><ul><ul><li>Financial participation from the city, county and/or school district; in the form of incentives & abatements </li></ul></ul><ul><ul><li>Secure financing in place </li></ul></ul><ul><ul><li>Used when there’s competition with another state </li></ul></ul><ul><ul><li>Requires unanimous approval of the Governor, Lt. Governor and Speaker </li></ul></ul><ul><li>TEF has generated 53,950 new jobs and $14+ billion in capital investments </li></ul><ul><li>MARTIFER (Portugal) awarded ~$1 million (Sep 2008) </li></ul><ul><ul><li>$40 million Wind Tower Plant investment / 225 jobs in San Angelo, TX </li></ul></ul>Texas Enterprise Fund (TEF)
  34. 35. <ul><li>Expedites development and commercialization of new technologies </li></ul><ul><li>Created in 2005 and re-appropriated in 2007 </li></ul><ul><li>Commercialization Grants: </li></ul><ul><ul><ul><li>Provides elected early-stage investment in new, technology-based, companies that collaborate with public or private institutions of higher education in Texas </li></ul></ul></ul><ul><li>Matching Research Superiority Grants: </li></ul><ul><ul><ul><li>For acquisition of top talent for companies collaborating with Texas higher education institutions </li></ul></ul></ul><ul><li>Grants: </li></ul><ul><ul><ul><li>Assists companies in leveraging State funds to match Federal grants </li></ul></ul></ul><ul><li>ETF has allotted $140 million to 90+ projects </li></ul>Emerging Technology Fund (ETF)
  35. 36. <ul><li>Texas unemployment rate consistently lower than the US rate </li></ul><ul><ul><ul><li>33 months of lower unemployment than US - currently 8.2% TX vs. 9.8% US </li></ul></ul></ul><ul><li>According to 2008 FDIC Report, Texas banks are the healthiest in nation </li></ul><ul><li>Texas foreclosures one of lowest in the US with 1 in every 838 homes </li></ul><ul><li>Comparable foreclosure rates in other states include: </li></ul><ul><ul><ul><li>Nevada - 1 in 62 homes </li></ul></ul></ul><ul><ul><ul><li>Florida - 1 in 140 homes </li></ul></ul></ul><ul><ul><ul><li>California - 1 in 144 homes </li></ul></ul></ul>Texas: Positive Economic Outlook Source: Texas State Comptroller of Public Accounts / US Department of Commerce
  36. 37. <ul><li>In FY08, Texas gained 93,500 jobs – #1 in US </li></ul><ul><ul><ul><ul><li>This represents over 59% of all job gains in US </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More than all 49 other states combined </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Houston 22,500 jobs - Austin 9,900 jobs - San Antonio 4,800 jobs </li></ul></ul></ul></ul>Texas: Positive Economic Outlook Source: Texas State Comptroller of Public Accounts / US Department of Commerce State Job Growth – Top 10 States State Net Jobs Texas 93,500 Oklahoma 19,600 Louisiana 12,400 Wyoming 9,000 Washington, DC 6,400 North Dakota 6,200 Alabama 4,800 Kansas 3,300
  37. 38. <ul><li>As stated by The Economist magazine: </li></ul><ul><li>“ The future is Texas. If you want to see where America should be heading, start by studying Texas. ” </li></ul><ul><li>____________ </li></ul><ul><li>As recently stated by Governor Rick Perry: </li></ul><ul><li>“ By reaching across borders, Texas’ entrepreneurs have made the Lone Star State a lynchpin of international trade, creating new opportunities for Texans and their worldwide partners alike.” </li></ul>What It All Means
  38. 39. Texas is Number One
  39. 40. <ul><li>Amir Mirabi </li></ul><ul><li>Manager - International Business </li></ul><ul><li>Office of the Governor - State of Texas </li></ul><ul><li>221 East 11 th Street, 4 th Floor </li></ul><ul><li>Austin, TX 78702 </li></ul><ul><li>Tel 512.936.0213 </li></ul><ul><li>Fax 512.936.0080 </li></ul><ul><li>[email_address] </li></ul>Contact Information

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