LOUISIANA EXPORTS JUMP 6.7% TO $5.7 BILLION IN 1ST QUARTER

The state’s total exports reached $5.7 billion in the January-March 2006 period, compared to $5.3 billion one year earlier. Agricultural products, chemicals, petroleum and coal, and processed food products were the top four export sectors, the same ranking as a year earlier. The state's leading export markets were China, Japan, and Mexico.

The WTC report was generated by the World Institute of Strategic Economic Research (WISER) from U.S. Census Bureau data. It covers the exports of both Louisiana originating products and some major commingled bulk commodities (especially grain and coal) produced in other states that are shipped abroad from Louisiana’s ports and recorded as Louisiana exports because of the difficulty of identifying the actual states of origin.

Export shipments of agricultural products through Louisiana’s lower Mississippi River ports - which account for over 50 percent of U.S. grain exports - were especially affected by the storms and the temporary closure of the ship channel last fall. However, agricultural shipments increased 8.2 percent in value to $2.5 billion in the first quarter of 2006 over a year ago and maintained its number one export ranking.

After agricultural products, Louisiana’s largest exports were chemicals ($1.2 billion, a 10.7 percent decrease), petroleum and coal products ($790 million, a 36.5 percent increase), processed foods ($530 million, a 15.5 percent increase), machinery ($136 million, a 15.4 percent decrease), and transportation equipment ($125 million, same). Overall, seven of the state’s top ten export categories showed increases in the first three months of 2006.

“Louisiana is back on course in its exports,” said Lawrence Collins, Director of International Services with Louisiana Economic Development. "The two hurricanes impacted our deep-water port system and also hit hard some of our important exporters in the southern part of the state. However, the ports and most exporters are now up and running, and we believe that 2006 will be a good year for Louisiana’s transportation sector and our exporting companies,” he added.

China continued to be the number one market for Louisiana exports in the first quarter of 2006 with $804 million (a 13.5 percent increase over the same period in 2005). Japan was the state’s second-largest export market with $589 million, and Mexico ranked third with $504 million. Canada finished in fourth place with $481 million.

“The major rebound in the exports of farm products, combined with the continuing low value of the U.S. dollar and expanding foreign markets for most products, all played key roles in the state’s increased shipments abroad,” said Eugene Schreiber, Managing Director of the World Trade Center.

Among all states, Louisiana ranked 12th, behind Indiana, Pennsylvania, New Jersey, and Ohio. Texas, California, and New York continued to be the top three exporting states. Total U.S. exports in January-March of this year were $244.8 billion, a 14.2 percent increase over the same period in 2005.

PORT OF NEW ORLEANS STEEL TONNAGE BOUNCES BACK

From January to August of 2005, New Orleans averaged 271,467 short tons per month of imported steel products. Cargo figures released show that within four months of the storm, steel bounced back to its pre-Katrina average. In December, 2005, the Port handled 269,881 short tons of steel and in January, 2006, it handled 326,917 short tons.

The number of ships arriving in the Port of New Orleans returned to normal levels of about 20-22 ship calls per week by the end of February. For the week of April 24, 28 ships were scheduled to arrive in the Port of New Orleans.

Gary LaGrange, President and CEO of the Port, stated that the quick recovery can be attributed not only to the hard work and cooperation of the Port industry but also to the loyalty and upward trend in the steel industry.

“We worked hard to get the first ship in the Port of New Orleans within two weeks, which demonstrated to the world that we are still a great transportation hub,” LaGrange said. We were also very lucky that steel was on the up tick. We sincerely appreciate the loyalty that steel shippers have shown to New Orleans. Their business has played a very important role in the recovery of the Port and the entire New Orleans region.”

Steel is one of the commodities that are imported to New Orleans for distribution to manufacturing plants all over the country, particularly in states that are connected to New Orleans through the Mississippi River and its tributaries.

“We are very pleased to be here for this important event and pleased to see the efforts the Port of New Orleans has made to get the steel trade back to normal,” said AIIS President Dave Phelps.

A study completed by Martin Associates shows that more than 380,000 total jobs in the Unites States were related to the annual cargo activity at the Port of New Orleans marine terminals, and these jobholders received $16.9 billion of personal income.

U.S. COMMERCE SECRETARY GUTIERREZ’S MAY 4 ADDRESS AT WTC

Thank you all for being here today. With each trip I make to New Orleans, and the region, I am encouraged by the progress I see. We are here today because President Bush and this Administration are confident the Gulf Coast region will fully recover and will see a better and brighter tomorrow.

And we are thankful that you share our commitment to making this happen. And, so, I thank you, the private sector, for the huge role you played in the hurricane response and recovery.

From volunteers pitching in to contributions from businesses of all sizes, we saw an outpouring of compassionate action.

Businesses showed real leadership. Let me give you a few of the examples that have been brought to my attention:

• Several companies held their prices steady in hurricane damaged areas.
• Many donated millions of dollars for relief efforts—as well as antibiotics and medicines; and critically needed equipment like generators, trucks, and trailers.
• And some companies guaranteed jobs for their displaced employees.

Many American companies set a high standard of corporate stewardship with their responses. Thank you all for everything that your companies have done, and are doing.

As Chairman Powell pointed out, the President has established guidelines on the federal role in response to this disaster.

Congress has committed $85 billion and we have asked for more than $20 billion more—which includes new spending to rebuild the hurricane protection system. ($18b + $2.2b)

We’ve been working closely with Congress, and state and local leaders, to develop integrated plans and spend taxpayer dollars with care.

But, as the President has said, the private sector will lead this recovery. We are engaging the private sector to create a stable, long-term and healthy recovery. We have set up the GO ZONE tax incentives that:

• Increase to $200,000 the amount that small businesses can expense. That's double what it was.
• Accelerate bonus depreciation cost recovery.
• Expense 50 percent of their demolition and cleanup costs.
• Extend net operating loss carrybacks to five-years, from the current two years.

These incentives will help local businesses get back on their feet and start providing jobs and paychecks. These incentives will encourage faster growth and development which, in turn, generate revenue for the state and create more jobs.

We believe the role of government is to create an environment that unleashes the power of private enterprise and innovation. In that environment the entrepreneur can flourish and companies can expand and create more jobs. That is the environment that will be the engine for growth in Louisiana and Mississippi.

There is simply no substitute for growth. Growth gives us options. Growth creates jobs. Growth empowers people. Growth raises our productivity and our standard of living.

There is no doubt in my mind that the good people of Louisiana and Mississippi will thrive in this environment.

That’s why the President is investing directly in our most valuable resource—our citizens. Our Workforce Training Initiative—a joint public/private initiative—trains workers in the skilled trades necessary to the rebuilding process.

This program will give 20,000 people from the region the opportunity to be employed and to contribute to the restoration of their own communities.

At the Department of Commerce we spend a lot of time promoting opportunities for companies abroad.

We feel that there is a great opportunity within our own borders—here in the Gulf Coast. And this business investment mission will help identify these opportunities.

During this trip we will tour Baton Rouge, New Orleans and Gulfport/Biloxi.

We will meet federal, state, and local government officials, as well as regional business leaders.

They’ll tell us what’s been done, what’s available, and how we can develop this network that will produce results.

All these actions are creating the best business climate in the world. We are encouraging American entrepreneurs and risk-takers. We are empowering people.

There is no better place in America to invest and do business than New Orleans.

And I want to acknowledge that the continued strength of our national economy will be a lifeline to the region.

Our underlying strength helped us withstand, and will now help us rebuild.

America's economy is growing, and our entrepreneurial spirit is strong.

President Bush and Republicans in Congress have cut taxes and that tax relief has left $880 billion in the hands of America's working families.

These efforts have produced results.

• Last year, our economy grew faster than any other major industrialized nation.
• Since August of 2003, our economy has created 5.1 million new jobs.
• The unemployment rate is 4.7 percent—lower than the average rate of the 1960s, 1970s, 1980s, and 1990s.

America’s economy is strong and we intend to keep it that way.

The overall economic news is good, but high gas prices are a burden on working families and small business owners.

Gas prices are predicted to remain high all summer, and the Administration understands that's going to be a continued strain on the American people.

We are working to ease the burden of high gasoline prices in the near term. As the President has outlined, our Administration is implementing a four-point plan:

1. Ensuring that Americans are treated fairly at the pumps; and that there is no fraud or manipulation of prices.

2. Promoting greater fuel efficiency, including expanded tax credits for hybrid and clean diesel cars bought this year.

3. Boosting our supplies of crude oil and gasoline by temporarily suspending deposits to the Strategic Petroleum Reserve, allowing waivers of special fuel blend requirements to relieve critical shortages, and streamlining the process for new and expanded refineries.

4. And investing in alternatives to oil, such as agricultural-based fuels like ethanol and biodiesel, better “plug-in hybrids,” and hydrogen fuel cells.

President Bush is also focused on the long term. Through the Advanced Energy Initiative and the American Competitiveness Initiative—we are using the power of science and technology to develop clean, alternative energy sources, and reduce our dependence on imported oil.

We need to get to work on the President’s energy plan. We need to reject the calls for higher taxes. Raising taxes will neither increase supply or lower prices.

You all know how important this region is for our national energy needs. The Gulf Coast represents approximately 28 percent of U.S. domestic crude oil production and approximately 15 percent of U.S. national refining capacity.

Remember when the storms hit here in the Gulf Coast, a lot of people were concerned about the price of crude oil and gasoline.

The President took action, and suspended reformulated gasoline rules, which took pressure off the market; and he opened up the Strategic Petroleum Reserve.

The regional oil and gas pipelines were back in operation unbelievably fast. The whole world was watching, and saw the great people and companies of this region working together. That’s why we’re confident the Gulf Coast is a great investment.

We know that the rebuilding process here will not be easy or accomplished overnight, but it will be done.

Together we can restore this wonderful region and revive the spirit of the Gulf Coast. The Gulf Coast and New Orleans will rise again.

And when that day comes, millions of Americans who joined the recovery will take pride in the great mission of rebuilding our Gulf Coast.

We can all play a part. I thank all of you and the men and women you represent for the important contribution that American businesses are making in this effort.

2006 LOUISIANA INTERNATIONAL TRADE DIRECTORY AVAILABLE

• Purchase the Directory in hard-copy or on CD

WTC TO HOST INTERNATIONAL MIXER ON JUNE 14

EXPORT/IMPORT SEMINAR TO COMMENCE MAY 24

WORLD AFFAIRS COUNCIL ANNUAL DINNER ON JUNE 8

FRENCH WINE FESTIVAL JUNE 16 AT MONTELEONE HOTEL

JUNE 25-30 LAFAYETTE BUSINESS MISSION TO VAASA, FINLAND

Lafayette is a founding member of the Sesame Network, which was established in 1991, and Vaasa is one of its newest members. The medium-size city organization now includes 15 cities on five continents (www.reseausesamenetwork.org). Vaasa will soon become the Finnish town with the largest fiber phone and TV network. The Vaasa ISE will be attended by business men and women, researchers, professors, and economic development and government officials from most of the Sesame member-cities, as well as a large contingent from Finland, particularly the Ostrobothnia region in Western Finland and its hub city of Vaasa. Finland is a world leader in business competitiveness.

Contact the Lafayette International Center at (337) 291-5474 for more information, including the ISE event schedule, a travel and registration package with suggested flights and a list of pre-registered companies from Finland signed up for early matchmaking.

LOUISIANA TRADE MISSION TO VENEZUELA PETROLEUM SHOW

The Latin American Petroleum Show (LAPS) has been Venezuela’s premier oil and gas show for over 25 years, attracting energy industry decision-makers and executives from around the world and hosting audiences that number in the thousands. LAPS is the ideal venue to learn about Venezuela’s ambitious 2006-2012 $56-billion hydrocarbons investment plan, as well as expand Louisiana’s commercial presence in a market worth close to half a billion dollars every year to U.S. exporters of oil and gas field machinery. For more information, contact Rebekah Robertson with Louisiana Economic Development at (225) 342-4318 or Delilah DeSouza with the New Orleans Export Assistance Center at (504) 915-3301.

EMPLOYMENT OPPORTUNITIES

M.G. Maher & Co. has immediate full time openings, with healthcare and other benefits, in their New Orleans office. Entry level and experienced Traffic/Keyer positions are available in the Import Department. Industry experience is not required: M. G. Maher will train. Please contact or send resumes to Silvia Perez at sperez@mgmaher.com or at (504) 561-6230.

NEW ORLEANS: GATEWAY FOR THE GLOBAL MARKETPLACE

While the campaigning New Orleans mayoral candidates understandably have been speaking almost entirely about their plans to rebuild the city, let us not forget that in the longer term we need to direct our attention as well to other areas of economic development, especially international trade and transportation.

First, we must recognize that New Orleans and Louisiana continue to be an integral part of the ever-expanding global economy. We must compete successfully in that global environment, and not just against Texas, Mississippi, and Arkansas. New Orleans should position itself to become “The Gateway for the Global Marketplace” for both outbound and inbound cargos and the related added value and jobs that could be generated locally through new industry, technology, services, and tourism. The city and state already have tremendous assets that work to our advantage internationally, including:

• The New Orleans Brand Name: A name already known worldwide for a variety of reasons -- the people, colorful history, distinctive culture, cuisine and music, the Mississippi River, the Port, oil and gas, and more. This brand recognition has been demonstrated repeatedly since Katrina by an incredible outpouring of international empathy and support and the influx of visiting delegations, trade missions, and dignitaries from other nations. Official visitors from France, the U.K., the Netherlands, Canada, Japan, Korea, Australia, Malaysia, Brazil, Austria, Hungary, the Czech Republic, Sweden -- the list goes on -- have been streaming in to assist, to build relationships, and to seek investments, trade, and other opportunities with local partners as part of the recovery process.
   
• The Global Mix: Why was New Orleans founded and settled by the French and Spanish and other nationalities over 300 years ago? It was based on world trade, and that objective is every bit as important today as it was then. We are truly a multinational, multicultural, and multilingual city in every sense and should capitalize more on that major advantage.
   
• An Entrepot: A marvelous, underused word defined as “a commercial center whose goods are received for distribution, transshipment, or repackaging” (Webster’s dictionary). Webster’s surely must mean New Orleans! We are in fact the perfect international transportation hub and distribution center to and from Mid-America by virtue of the river, the Intracoastal Waterway, the Gulf of Mexico, six Class I railroads, the Interstate highway system, and the airport.
   
• The Mega-Port: Few of our own residents -- let alone outsiders -- are aware that the lower Mississippi River has the largest port complex in the world in total waterborne commerce (five deepwater ports from the Gulf to Baton Rouge), a powerful asset that we need to market more aggressively abroad. Louisiana’s pre-Katrina maritime industry accounted for over 240,000 jobs, about one in eight in the state, with an economic impact exceeding $29 billion (Dr. Tim Ryan, 2001 UNO study). The Port of New Orleans, which is already back to 80 percent of its pre-Katrina cargo volume and over 100 percent of its ship calls, is largely a transit port. But it has the potential to add more processing, value, and jobs to inbound and outbound cargos (such as been done with coffee) with steel, rubber, petrochemical, agricultural, forest, seafood, and other products. Coordinated financial support from State government and the Legislature is needed to accomplish that objective, as happens in other maritime states, and it will benefit Louisiana even more in the future as a statewide economic multiplier.
   
• The Hemispheric Advantage: The Mississippi River is truly “The Avenue of the Americas,” a magnificant water highway leading to and from the rest of the world, and especially Latin America. In 2005 a total of $19.2 billon of Louisiana-originating products and bulk commodities from other states (especially agricultural exports) were shipped abroad from our deepwater ports -- after ag came chemicals, petroleum and coal, processed food, machinery, and transportation equipment (U.S. Census Bureau data). Over one-third of the $19.2 billion of worldwide exports went to Latin America. Mexico was the number one market for Louisiana exports last year for the first time, overtaking Japan. Canada was ranked fourth, with both results reflecting the positive NAFTA trade impact on Louisiana.
   
• Strategic Action: Much more can be said about how the forces of globalization can be used to New Orleans’ further advantage, given our many natural strengths. Once the election is over, the continuing or new mayor should take the lead with business, government, and the area’s universities to develop creative strategies and an international master plan that will build on these enhanced assets that New Orleans and Louisiana can offer to the world.