A governor's perspective on the trade - Wisconsin governor Tommy G. Thompson

Business America, May 6, 1991 by Tommy G. Thomposn

Services. What will happen to traditional state regulation of banking, insurance, legal and accounting services, and telecommunications under a new multilateral system of rules? How might firms in our states benefit from greater access to emerging markets in Asia and Latin America that now block most imports of U.S. services?

Government Procurement. How will states' purchasing practices and contract bidding procedures be changed? Will state laws be summarily preempted by an international agreement?

Government Subsidies. How might state and local incentives to encourage economic development and attract investment be modified by a multilateral trade agreement?

Foreign investment. On the other side of incentives, will state options to place performance requirements or other conditions on investors be curtailed by a GATT agreement?

The answers to these and many other questions will affect state governments in profound ways. As the negotiators get closer to a final agreement, it will be important for states to determine priorities and consult closely with U.S. negotiators to ensure that state interests are not severely compromised.

As chairman of U.S. Trade Representative Carla Hills' Intergovernmental Policy Advisory Committee, I am trying to do just that. Together with the 14 other governors on the committee, I hope to be able to provide U.S. negotiators with specific information about state concerns.

An effective multilateral framework governing trade, along with the range of individual or regional initiatives under way, translates into tremendous opportunity for American companies to expand their business transactions with the rest of the world. Governors' trade strategies must be designed to respond to challenges and opportunities whatever the context, regional or global, bilateral or multilateral.

Conclusion

As the 21st century dawns, change has become a way of life. Coping with change has become part of the definition of our jobs as governors. We have many tools at our disposal. Through promoting trade and investment, improving America's education system, enhancing the nation's basic infrastructure, encouraging innovation, and taking advantage of specific opportunities around the world, governors can shape an effective state response to changes in the state, national, and global economies.