Exports boosting Bama

WITH NEARLY $16 billion in trade between Alabama companies and foreign customers during 2008, it's easy to see the advantages of living in a global economy.

Moreover, Gov. Bob Riley's wise initiative known as "Export Alabama" can be credited with helping Alabama companies make significant gains in international trade.

The initiative, launched by the governor in 2004, helps producers in the state find opportunities in foreign markets where demand is growing.

And the initiative has paid off. Foreign trade by Alabama producers has increased from $8.3 billion in 2004 to $15.8 billion last year, with a 10 percent increase between 2007 and 2008.

Such robust trade creates jobs and raises salaries in Alabama. So while critics of free trade agreements can rightly point to lost jobs in the state to other countries — particularly in the textile industry — they are remiss to discount the economic advantages of eliminating tariffs on goods shipped between the U.S. and other countries.

Alabama reaps the benefits of shipments of automobiles (shipped to 113 countries and valued at $5 billion in sales), chemicals (up 13.5 percent over 2007 to $2.27 billion), minerals and ores (up 69 percent from a year ago to $1.15 billion), paper (up 12.7 percent to $1 billion), and primary metal manufacturing (up 73 percent to $1 billion).

Foreign trade of food products from Alabama increased a healthy 180 percent to $348 million in 2008.

Alabama also is a strong exporter of transportation equipment, machinery, computer and electronic products, agricultural products and plastics and rubber products.

Even with declines in trade, Germany and Canada remain Alabama's strongest trade partners, with a combined trade worth nearly $6 billion in 2008.

Gov. Riley deserves praise for recognizing Alabama's potential for foreign trade growth and acting to ensure that the expansion occurred. And Alabama's companies deserve recognition for developing trade with customers in 192 countries.

Source: http://www.al.com/opinion/