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“Washington is Open for Business” Hear the speech (MP3 file) Thank you. It is a pleasure and honor to be with you here in Sao Paulo today. We have come a long way – the distance between Seattle and Sao Paulo is about 7,000 miles or 11,000 kilometers. It was about 14 hours of flight time to get here, not including a layover. That may seem like a long distance but our group would like to make it much closer, at least in terms of trade. And in this new, global economy there is no reason why we cannot forge closer ties between the United States and Brazil, or more importantly to our group, between Washington state and Brazil. Our delegation is made up of business executives from the fields of finance, environmental services, consulting and others; government officials and international trade specialists. We are in Brazil for just over a week to explore your country and meet your compatriots. We are particularly interested in getting a first-hand look at your sustainable business practices, but also want to examine some of your civic approaches to transportation issues and the environment. Washington state has a portfolio of businesses that includes information technology, aviation, advanced manufacturing, agriculture and food processing, fishing, forestry, clean energy and biotechnology. Despite this broad portfolio, we are always interested in finding some new investment opportunities. Our latest trade numbers show that Washington has posted a 39 percent increase in exports this year and we're on track to hit $45 billion in exports by the end of the year. We do have strong relationships with many countries, and especially with Asia due to our geography, but in any good business plan, whether for a company or the state of Washington, diversification is essential! Because of Washington’s location and proximity to Asian markets, our state is very trade dependent, in fact the most trade-dependent in the country. And we hope to learn how Brazil might offer many exciting prospects to consider for our trading portfolio. Brazil is a steady and very important trading partner for Washington state. Washington consistently exports nearly a billion U.S. dollars – that’s more than 2 billion Brazilian reais (RAY–AISH) – in goods and services per year to Brazil. In the years of large airplane orders from Boeing – such as this past year - we have recorded several times that. I understand that Gol Air has purchased a lot of new Boeing 737s and we certainly appreciate their business. Gol is getting an excellent airplane for their regional routes. Now please allow me a few minutes to tell you a little more about the state that we represent - the great state of Washington. Washington is located in the very northwest corner of the United States, about 3,700 kilometers to the west from our nation’s capital, Washington, D.C. We are the only state to be named after a U.S. President, George Washington. We are a state of approximately 6.3 million and growing steadily. Our land area is 172,349 square kilometers, about 50,000 square km smaller than your province with a little more than half of your city’s population! Within that area are some places and people I’m sure you are familiar with. If you were ever to visit our state you would find majestic mountains to hike and ski in, crystal clear lakes, rivers, bays and, of course, the Pacific Ocean for fishing, boating, swimming, even wind surfing. When you visit, you may enjoy the tranquility of a ferry boat ride around the islands of our Puget Sound, the protected sea that laps along our largest population center and ports. Washington is the home of Mount St. Helens, which may be familiar to you because of its violent eruption in 1980. The outward explosion took off about the top third of the mountain and laid waste to much of the surrounding countryside. The volcano continues to be active to this day. But a larger, even more famous volcano is Mt. Rainier to the north. At 4,392 meters it is our state’s tallest mountain, about another third taller than your Pico da Neblina (2,994 metres). Rainier is the second tallest peak in the continental United States. Both Mt. Rainier and St. Helens are part of our Cascade mountain range. We are also home to the Olympic mountains, which rise up majestically from our coastal region and separate our largest city, Seattle, from the Pacific Ocean. Like the people of Brazil, the citizens of Washington value our waters and lands and want to do everything we can to preserve our environment and our way of life. We are tested and challenged by tremendous growth in population and competition for diminishing resources. The majority of our population resides in our Puget Sound region, where you will find our two biggest ports – the Port of Seattle and the Port of Tacoma. Billions of dollars of products are exported and imported through these ports every year, from automobiles to agricultural products. In fact, together these two ports form the third-largest gateway to the U.S. We are joined here by representatives of both ports in our group – Commissioner Bottiger and Mr. Hon from the Port of Tacoma and Commissioner Edwards from the Port of Seattle. Washington’s leading exports include transportation/aerospace products, agricultural crops, electronic/scientific equipment, wood products, industrial machinery, telecommunications, and medical pharmaceuticals. I mentioned Boeing awhile ago so should also note that Washington is the birthplace of Boeing and remains the headquarters for Boeing’s Commercial aircraft division. So practically every Boeing airplane purchased by Brazil is assembled in Washington, although many of its parts may be made in other parts of the country and even the world. I know Boeing is facing some increased competition from Embraer, especially in the small jet airplane category, and I’m sure Boeing is doing what we can to continue to produce an excellent product that will be ever competitive in the world markets. We look forward to touring Embraer tomorrow. Washington has about 3 million people in its workforce. Our top industries in terms of growth are construction, administrative and waste services, professional and technical services; accommodation and food services, health care and social assistance. Washington State is a hot-bed of technology – home of major technology and software firms including Microsoft, which is headquartered in our state. We are also the home of leading biotechnology companies such as Seattle Genetics. Washington state is a major center for world class cancer research with institutions like Seattle Cancer Care Alliance – an internationally renowned consortium made up of three major research institutions that are leading the way for all types of cancer prevention and treatment. We are the headquarters of Amazon.com –world’s largest online bookstore, named, of course, after your most famous river. We are also the home to many other innovative Internet companies: Classmates.com, Whitepages.com, and Marchex to name a few. We also have companies like Intermec, one of the inventors of bar code technology and devices that help with product tracking and inventory control. Washington has two major research universities in University of Washington in Seattle and Washington State University in Pullman and many other excellent four-year and two-year institutions of higher education. We have Wren McNally with the UW Global Business Center with us here. The economic diversity of our state includes major agriculture interests. In 2004 Washington ranked first in the nation in production of red raspberries, hops, apples, sweet cherries, pears, Concord grapes, and Niagara grapes. We also lead the nation in the production of processed potatoes. Washington is the second largest producer of premium wines in the United States – but number one in quality. The industry has grown from its infancy about three decades ago to the point where we now have 400 wineries producing about 68 million liters a year. The economic impact of the wine industry in Washington is now estimated at about $3 billion dollars U.S., or more than 6 billion Brazil reais, per year. I understand Brazil also has a growing wine industry, particularly in the Rio Grande do Sul region. While wine is a very large industry we also of course are headquarters of another favorite type of beverage producer which, I’m sure, is becoming more and more familiar to you all. That is Starbucks. Starbucks is largest specialty coffee retailer in the world, with more than 12,000 stores in almost 40 countries. Starbucks employs more than 120,000 people worldwide. It also works to partner with local suppliers around the world. These efforts are key to how Starbucks does business around the globe. Starbucks recently announced its intentions to open stores throughout Brazil in a joint venture with Cafés Sereia do Brasil Participaçöes SA. Here it will be known as Starbucks Brasil Comércio de Cafés Ltda., and the first store is to be opened right here in Sao Paulo next month! Of course the Brazilian coffee bean has long been part of the Starbucks specially selected coffee products so Brazil ultimately does benefit by Starbucks’ success. We wish the relationship between Brazil and Starbucks to be a long and successful one. Boeing and Starbucks are both examples of world economies being intertwined. We have areas of our state that have long been reliant on one or two industries, such as timber and fishing … yet with the changing world markets over the past two decades they are now forced to look at diversifying their economic base and continue to refine their existing markets. One of these areas, Grays Harbor, just two decades ago was home to significant environmental battles. Now this same area is home to a network of low-emission energy producers, environmentally advanced manufacturers of recycled products and biofuel production and distribution companies. Washington's environmental industry sector is also an active part of the state's export economy. Washington firms sell their products and services to markets around the globe. According to the Northwest Environmental Business Council, Washington exported $189 million in environmental services in the year 2000. Washington is ranked 20th in the nation in exporting environmental services and equipment. Washington state does have a long history of environmental successes, from model sewage treatment programs to passing progressive legislation and to now being recognized as one of the global leaders in developing sustainable resources. We know, however, that you in Brazil are regarded as the masters of sustainable business practices and again, one of the primary reasons we are here is to learn from your global leadership in this area. We want to do better in the area of sustainable resources and think we can use Brazil as a model in many ways. Sustainability is fast becoming a strategic issue for businesses in all sectors. In the last five years a number of companies have completely redefined their business strategies in line with principles of ‘sustainable business practices’, that is, balancing the requirements for economic development, environmental quality and social justice as well as profit. They do this not just out of charity, but because it makes good business sense – studies have shown increased sales and revenue, and higher employee and customer satisfaction. People, profit and the planet may be the buzzwords, but they are indeed all intertwined and we need to keep all three in mind as we work toward sustainability. To that end, Washington State is rewarding and acknowledging companies and public entities that deploy sustainable business practices. Our state sponsors the annual governor’s award for Pollution Prevention and Sustainable Practices. This award has been given out for more than 15 years to a variety of businesses. The 2006 winners, just announced last week, ranged from food production to dentistry and electronics. One winner in 2005 was a company that made over one billion aluminum beverage cans in 2004. The company was able to save millions of dollars since 1998 by finding ways to cuts its waste and to reduce spoilage. Another lighting company earned this award because it was able to successfully reduce its use of toxic chemicals and reduce air emissions by 124,738 kilos a year.
Washington is also taking
the lead in the public sector. We were the first state to require that
new public buildings meet green building standards. In 2005 Governor
Gregoire signed Leadership in Energy and Environmental Design (LEED)
requirements into law requiring green standards for state-funded
projects larger than 465 square meters and for projects of major
renovation. In 2003 our former Governor Locke signed an executive order committing state government operations be conducted in a manner consistent with key principles of sustainability and contribute positively towards the quality of life of all citizens. Examples of public investment in sustainable practices include: A 1,900-bed correctional institution in one of our rural communities has embarked on a re-lamping project that will save energy and labor. The facility, now five years old, is re-lamping with more energy efficient fluorescent lamps. Grays Harbor Public Utility District is a partner in this effort and is providing a rebate based on expected energy savings. They are replacing 12,000 lamps, with a savings of $10 per lamp over life of each bulb. Even in State Capitol, where I work, we are practicing sustainable energy practices. Two years ago we installed the largest solar array in the nation on a state capitol building. Solar panels were placed on the fifth-floor roof where they cannot be seen but can generate 20 kilowatts of energy - enough to light the dome and its lantern as a symbol of renewable energy every night of the year from dusk to midnight. During the recent major rehabilitation project of the capitol, the assemblies of more than 3,400 composite wood panels and 9144 lineal meters of 2x4 wood braces used to protect historic materials and fixtures were specifically designed to be dismantled at completion of construction, and reused to frame and sheath three new homes. Habitat for Humanity sold the wood and used the funding to build homes in our local area. Anyway, I could go on but the point is that sustainable business practices are not only a good idea, but one that will help any practitioner be competitive in the global markets. Our governor, Christine Gregoire, has laid out a plan for growing jobs and income that focuses on a global economy. Her plan acknowledges that the economy that we have today is not the same at all as that of yesterday. We have many new industries that never existed before, and new technologies are spurring our growth and development. Washington wants to partner with the world to help us achieve our economic success, and we would like very much to count Brazil as one of our new global partners. Thank you.
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