There’s definitely a way to do trade missions that makes them legit versus taxpayer funded transnational road trips. Gov. Jeb Bush perfected that art. Before his first term had ended, Bush led Team Florida trade and business missions to Brazil, Mexico, Israel, Chile, Argentina and Uruguay along with business leaders representing 350 Florida companies who together brought greater than $350 million in new business to the state as a direct result of the trips.
Gov. Rick Scott has followed in Bush’s footsteps, according to a report released Wednesday by Florida TaxWatch, which estimates that since 2009, Florida-origin exports have grown from $46.9 billion to $66.2 billion, of which small and medium-sized enterprises (SMEs) make up 68 percent of the total.
The large share of SME trade is more than double the national average and the highest of any state in the nation – and is remarkable considering that many of these businesses do not have professional staff to explore opportunities to increase exports.
Official trade and business missions are a large part of Florida’s trade success, according to TaxWatch.
“The Governor’s leadership in a trade mission ensures that the Florida companies who participate will have access to the high-level decision makers and that the state of Florida will receive a significant amount of attention from the host country, especially the media,” said Many Mencia, senior vice president and COO of the International Trade and Business Development Unit of Enterprise Florida. “This provides a platform for Florida’s trade mission participants to meet the right people and for promoting Florida as an ideal destination for trade and investment.”
Former Florida Governor and former Mayor of Tampa Bob Martinez knows this well. In his official roles, Martinez was involved with ten trade missions, and validates the importance of public officials leading the trip.
“High visibility public officials are a major attractor for meetings and events. They bring synergy to the mission,” Martinez wrote, who can see out of the window of his Tampa high rise office “the fruits of a trade mission to England that brought a financial service company to our community.”
Although the TaxWatch report doesn’t lay it out in terms of specific return-on-investment, it seems clear by comparison that the about $1 million in public funding spent to support trade partners on these missions is small compared to the resulting impact on Florida’s economy.
Some analyses, such as one published by the Maine International Trade Center, estimate a 100-to-1 return on investment for every dollar spent on trade missions. For example, Wisconsin Governor Scott Walker’s 2012 trade mission to China cost $125,000 to taxpayers but helped negotiate an agreement with a Chinese pharmaceutical company that will generate $200 million over ten years, making the trip worth that deal alone.
The TaxWatch report also includes a thorough analysis of Florida’s major trade partners here.
