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Foreign Tariff Reductions and California Exports

By Jon D. Haveman

The federal government is working energetically on a broad array of trade liberalization agreements, but the potential effects of these agreements on California firms are not well known. This report estimates the export expansions that would result from each agreement on the current agenda. It also identifies the sources of California’s recent export growth, estimates California’s exports gains if worldwide tariffs were eliminated completely, and details the differences between California’s trade liberalization interests and those of the rest of the nation. Because new trade policies are likely to be more consequential for California than for other states, California’s firms, policymakers, and congressional delegation should weigh the report’s key findings when working with U.S. trade officials.

Report

Business Without Borders? The Globalization of the California Economy

By Howard J. Shatz

State policymakers have long focused on boosting California exports and attracting foreign companies, but global economic integration is likely to provide new challenges and opportunities. This report describes California’s global exposure with special emphasis on goods and services trade, foreign direct investment, and port activity. It finds that the California economy does not differ markedly from the rest of the United States in some standard measures of economic globalization, but that California firms are at the leading edge of several emergent trends. Compared to the rest of the United States, California exports more services and manufactured goods, and its ports ship more exports by air than by land or sea. Also, California manufacturers are more likely to use production sharing than other U.S. firms.

Report

California’s Vested Interest in U.S. Trade Liberalization Initiatives

By Jon D. Haveman

This report analyzes California's export markets, answering the following questions:  To whom are goods shipped?  What sorts of goods are exported?  How significant are the barriers that California exports face in other countries?  It also evaluates the effect of recent and pending trade agreements on the ability of California exports to penetrate particular foreign markets and assesses the extent to which recent and future trade initiatives disproportionately benefit or harm the California export economy.

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