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July 2012
EDA Office of Foreign Trade • Riverside County, California • USA
T
he Golden State is at
a tipping point. While we
may be no different than
any other region going through
economic uncertainty, California is
at risk of losing a major share of its
international trade unless we do
something soon.
In 2014, the Panama Canal will have
double the capacity allowing more
and larger ships to cross from the
Pacific Ocean to the Atlantic Ocean.
What this means is that more ships
can choose to transport its goods
bound for the East Coast through the
Panama Canal instead of California’s
ports.
With other American ports
investing billions to upgrade their
infrastructure to attract new trade,
the competition will only become
fiercer. That is why the Legislature
and Governor Brown need to act
quickly to keep our state competitive.
As a member of the Assembly’s
Revenue and Taxation Committee, I
joined Republicans and Democrats to
advance legislation that would provide
a powerful incentive to retain and
attract job creators engaged in trade.
Assembly Bill 2656 provides tax
credits for exporters and importers
who do one of three things: increase
their cargo through California’s ports
and airports; have a net increase
in full-time employees hired in the
state; or incur capital costs for a cargo
facility based here. Each company
could qualify for up to $250,000 a
year in tax credits. The credits would
be available for five years.
Much is at stake. In 2009, California
exported $120 billion in goods,
ranking as the 11th largest exporter in
the world. Our ports support a million
cargo-related jobs in our communities
and countless more through
inter-connected industries such as
construction and manufacturing.
If international companies find other
routes to be more affordable than
California, then our state will lose
jobs. Each lost job will mean less tax
revenue to support essential services
such as education. That means bigger
budget deficits in the future.
Our state likes to pride itself on
being a leader, but unless we act to
retain trade here and streamline our
complex regulatory environment,
we will inevitably lose business.
Sacramentomust pass AB 2656 this year.
Assemblyman Brian Nestande, R-Palm
Desert, represents the 64th Assembly
District in the California Legislature
and is Chair of the Assembly Republican
Caucus.
By Assemblyman Brian Nestande
California Must Act to Preserve
Trade-Based Jobs
With other American ports investing billions
to upgrade their infrastructure to attract
new trade, the competition will only become
fiercer.