International Trade and Diplomacy Office (ITDO

OVERVIEW

We are growing Utah’s economy by: 1 Foreign Direct Investment (FDI): facilitating FDI opportunities in Utah through the promotion of Utah’s dedicated workforce and vibrant economy to foreign investors 2 Global Market Development: assisting Utah businesses to secure international business contacts and increase goods and service exports 3 Diplomacy: facilitating diplomacy meetings for the State and leveraging diplomatic contacts to develop and expand foreign markets for Utah

Foreign Direct Investment

Utah has a stable and business friendly climate It consistently receives recognition for its low operating costs, high economic growth and excellent governance Innovation, industry, education and good governance culminate in Utah to create a diverse and thriving economy that is now home to multiple world-class corporations The importance of the U S market to global firms will continue to facilitate inward investment opportunities into the various states Utah’s unique advantages provide excellent opportunities to bring many of those global companies here

Frank Joklik, Honorary Consul of the United Kingdom in Utah, Governor Gary R. Herbert and Sir Peter Westcott, Ambassador of the United Kingdom during the Ambassador’s diplomatic visit to Utah.

From left to right: - Spencer P. Eccles - Governor’s Office of Economic Development - Derek Miller - World Trade Center Utah - Cynthia Chen - China Trade Representative - Anna Derschang - European Union Trade Representative - Lieutenant Governor Cox - State of Utah - Thomas Schuck - European Union Trade Representative - Uri Attir - Israel Trade Representative - Cristina Hernandez - Mexico Trade Representative - Marlon Barrett - European Union Representative in Utah

There are already 188 foreign firms from 29 countries currently doing business in Utah Together they employ 29,000 Utahns across various industries The top five countries for the number of foreign firms doing business in Utah represent 63 percent of the total foreign direct investment within Utah These countries and the number of businesses they have in Utah are: Canada (35), the United Kingdom (27), Japan (20), France (19), and Germany (18)

Our new international trade strategy continues to support export expansion while placing greater emphasis on increasing foreign direct investment into Utah ITDO recently contracted new trade representatives in the European Union, China, Mexico, and Israel, where significant opportunities to promote foreign direct investment in Utah have been identified

Global Market Development

More than 70 percent of the world’s purchasing power is located outside of the United States making the export of Utah’s high-quality, innovative goods and services very profitable for Utah businesses of all sizes On average, businesses that export experience faster sales, increased job creation and higher employee wages over non-exporting businesses Additionally, businesses that export are generally more stable and able to weather economic downturns more successfully because they sell to a diverse portfolio of global markets

Exports from Utah totaled $16.1 billion in 2013 of which $7.6 billion were value-add exports From 2009 to 2013, Utah’s exports grew by 35 8 percent (compared to the national average of 29 5 percent) enabling Utah businesses that export to employ more than 320,000 Utahns

Governor Herbert has set the goal to increase Utah’s value-add exports to $9 billion by the end of 2015 Reaching the Governor’s goal begins with helping Utah businesses across the state secure international business contacts, partners, and distributors that will lead to sales During fiscal year 2014, in partnership with World Trade Center Utah and the U S Commercial Service, the State organized six trade missions to the United Kingdom, Philippines, Peru, China, Brazil and Mexico Trade missions to the United Kingdom and Mexico were led by Governor Herbert During the trade missions, a total of 66 Utah businesses held meetings with potential international partners and reported $36.2 million in projected sales over the next three to five years

In addition to trade missions, the State helps Utah businesses organize independent foreign market sales trips and exhibit at international trade shows which often result in immediate sales During fiscal year 2014, Utah had 18 small businesses participate in an independent trade event activity of their choice They reported $2.2 million in actual sales occurring from the events with $18.4 million in projected sales over the next three to five years

Utah small businesses in the initial stages of learning successful international business techniques and exporting best practices benefitted greatly from the educational events sponsored by the State The events varied in size from small roundtables to large conferences which will include the Utah Global Forum in fiscal year 2015 Additionally, Utah businesses received international business mentoring and international market strategy consultations through the State During fiscal year 2014, approximately 900 individuals representing approximately 450 companies participated in these various educational opportunities A calendar of events is available at business utah gov/international Governor Gary R. Herbert and Governor of the State of Mexico Eruviel Ávila Villegas, signing a Memorandum of Understanding between the State of Utah and the State of Mexico during the Mexico Trade Mission.

25

Billions of Dollars

20

15

10

5

$10.3

$4.6 Utah Annual Exports

$13.8 $19.0 $19.3

$5.8 $6.4 $6.8 $16.1

$7.6

0

2009 2010

Total Exports 2011 2012

Value-add Exports 2013

*The decline in total exports from 2012-13 can be attributed to common business cycle fluctuations in commodity markets. More specifically, the value of precious metals (gold) decreased significantly during the last quarter of 2013. Precious metals removed, Utah’s value-add exports increased by 10% from 2012 to 2013.

Diplomacy

The International Trade and Diplomacy Office facilitates diplomacy for the State and leverages diplomatic contacts to develop and expand foreign markets for Utah ITDO hosts many foreign trade visitors and foreign business representatives each year The State benefits from international promotion of Utah’s business community and attraction of international investment in Utah by developing partnerships and alliances through diplomatic relations During fiscal year 2014, ITDO hosted more than 40 heads of state, ambassadors, and other diplomats

For additional information about International Trade and Diplomacy visit business.utah.gov/international or contact

Brett Heimburger,

Director of International Trade and Diplomacy, at bheimburger@utah.gov or 801-538-8651