by Glenn Tschimpke
Staff Writer
“We rail at trade, but the historian of the world will see that it was the principle of liberty; that it settled America, and destroyed feudalism, and made peace and keeps peace.”
So wrote essayist Ralph Waldo Emerson in 1844. As the smoldering rubble of the World Trade Center towers in New York City is scooped up and trucked away, the relative peace and security the United States enjoyed with the world before Sept. 11 is a fading memory. With Afghanistan pockmarked with American bomb craters as U.S. forces attempt to exterminate Osama bin Laden and his Al Qaeda terrorism ring, Washington is eying Somalia as next target of U.S. revenge.
But as Emerson postulated that trade is a key to peace over 150 years ago, local international gurus note that the same slogan rings true today. Peace can be successfully maintained through relations and trade.
“I really believe our international friends are our strongest defense against terrorism,” said George Banks, chief of international development for the Jacksonville Economic Development Commission. “As long as we’re talking to people, as long as we’re dealing with people, whether it’s culturally or trade, we’re solidifying relationships. We’re understanding each other better and we’re helping each other.”
Two prominent Jacksonville agencies, the JEDC and the Chamber of Commerce place heavy stock in the merits of international trade, not only for the United States as a whole, but for Jacksonville specifically.
“The Department of Commerce tracks the number of manufacture service providers and services doing business internationally,” said Joanne Emslie-Korn, the Chamber’s international and World Trade Center executive director. “They had about $800 million-worth that was done internationally in Jacksonville in 1999. I suspect that we were at a billion in 2000.”
In 1999, the last year for which statistics are available, the U.S. Department of Commerce figures indicate Jacksonville engaged in vigorous trading with Canada, the Caribbean, Central America and Japan. According to the Jacksonville Port Authority, the top destinations for cargo leaving Jaxport in 2000 were Puerto Rico, Brazil, the Bahamas, Venezuela and Mexico. Emslie-Korn said it is imperative for Northeast Florida businesses to continue to build upon Jacksonville’s Latin-American connection.
“Helping our companies get into Latin America, which is our strongest and closest relationship, is most important,” she said. “If you look at the port certificates, you can see that it’s mostly Puerto Rico. So where are our guys doing business? We found that Mexico and Brazil are our top two markets.”
Each year, the Jacksonville Chamber helps facilitate trade missions throughout the world, in conjunction with either the U.S. Chamber of Commerce or U.S. embassies, to spur international trade. To prevent wasted trips, the Chamber screens businesses beforehand to make sure there are potential buyers or sellers to meet the companies needs.
“The company sends the product literature — who they want to look for, who they want to meet there,” said Emslie-Korn. “They are pre-screened so you go over there knowing you have 10 to 15 people who really want to talk to you and not waste your time. It’s kind of like a really good foot in the door of people you really want to meet.”
In March, the U.S. consulate will host Rep Com Brazil 2002, which is designed to pair American companies with South American clients or buyers. Sixteen companies from Jacksonville participated last year.
“People come from all over Brazil, plus Paraguay, Argentina and Uruguay,” noted Emslie-Korn. “It’s a good chance to get into the door.”
Mexico, a beneficiary of the North American Free Trade Agreement, lags behind Canada as a trading partner with Jacksonville but that could soon change. A pact called The Accord States of the Gulf of Mexico would create a tightly knit trade group of Gulf states in the U.S. and Mexico. In late January, The World Trade Center Jacksonville will conduct a trade mission to Veracruz, Mexico as an opportunity for U.S. and Mexican businesses to network and discuss port issues, energy, infrastructure, disaster management and security. Once again, Jacksonville businesses are encouraged to participate.
“This is one we’re kind of excited about,” said Emslie-Korn. “[Florida] Secretary [of State] Katherine Harris is working very closely with this. She really took this on and built it up to something.”
Proximity is the reason that the Caribbean and Central and South America have become strong trading partners with Jacksonville, but the latest big buzz around the international water cooler is Asia. Countries like Japan, Taiwan and Korea have long been strong trading partners with the United States. China’s recent debut into the World Trade Organization has unveiled over one billion previously untapped potential consumers to the rest of the world. The Jacksonville Chamber looks to get into the mix and the recent exclusive Florida visit by the Chinese ambassador only added to the fervor.
To prove the Chamber’s commitment to develop positive trade relations with China, they recently teamed with Florida Community College at Jacksonville to develop the Chinese Business Education Center, headquartered at the college’s Kent Campus.
“We’re going to run an orientation seminar Jan. 10 on what you need to know about China before you go,” said Emslie-Korn, referring to businesses venturing to the far east. “We’ll deal with some of the relationship aspects, the cultural aspects, the technical aspects and reforms. There is so much reform in the legal, insurance, distribution and banking because they opened up to the WTO. We’re going to have this as an on-going series.”
Although Florida has goods China wants, including citrus and lumber, Emslie-Korn said a number of Northeast Florida service industries have benefited from the emergence of China, including architectural, engineering legal and logistics firms.
Positive trade relations with China goes beyond the simple give and take of goods and services. Jacksonville could use its port to connect its deeply-rooted Latin-American trade partners with China.
“The Chinese see us in Florida because they themselves, too, would like to develop markets in Latin America,” explained Emslie-Korn. “The Chinese really don’t have a lot of relationship building in Latin America. They see us as a good stable place to come in with products — semi-manufactured, finished manufactured — and then work the network down to Latin America. That’s why they’re looking at us.”
From a logistical standpoint, Jacksonville’s port is in relatively strategic location compared to the rest of Florida.
“The biggest thing we sell about Jacksonville is our location,” said Banks. “We are the furthest inland city on the East Coast. So we’re kind of protected from hurricanes. We also have three major railroads. We have three major highways — I-95, I-10 and I-75. So you could go to somebody and say, ‘if you’re looking at an eight-state southeast region, this is the place to ship it because you’re getting more bang for your buck.’”
Banks’ JEDC position was created two and half years ago to strengthen Jacksonville’s international profile both locally and abroad.
“If you go down to Gainesville and talk to folks down there who are involved in international business and ask them what port they use to import and export, it’s Jacksonville,” he said. “The same goes if you go as far west as Lake City.”
Although the City has had success in developing its sister city program, Masan, Korea has blossomed in recent years. A Masan delegation recently visited Northeast Florida to explore future business prospects in the area.
“There is a flower in Korea called the Butterfly Orchid that’s quite beautiful,” said Banks. “The mayor of Masan is very interested in exporting these things. Because of the strong relationship Masan has with Jacksonville as a sister city, the mayor was very interested in seeing if we can import them here and sell them.”
Even if other nations or states only use Jacksonville’s port facilities to move cargo through to other areas, Jacksonville still benefits.
“When it crosses the docks, you get money for it,” said Banks. “Whether it’s going out or coming in, there’s a fee that’s charged.”
In fiscal year 2001, Jaxport saw 579,924 vehicles roll across the docks, the most since 1987. Jacksonville has traditionally been one of the nation’s busiest vehicle handling ports, but it has recently stepped up the amount of bulk cargo. Since 1995, the amount traveling through Jaxport has tripled to over 672,000 tons in 2001. Recent international shipments contributed to the boon hailed from countries in Latin America and Asia, including Brazil, Indonesia, Malaysia and Venezuela.
The economic ripple effect of Sept. 11 aside, the facts, figures and the promise of improved international trade has the Jacksonville business shakers and movers very excited.
Emslie-Korn would like to see at least two trade missions a year travel to Asia to encourage positive business relationships with China as well as Singapore and Vietnam, Banks continues to foster a healthy relationship with Korea and Jacksonville will look to increase its Latin American connections in 2002.
Emerson would be pleased.