ACR 104 (Holden) — Assembly Committee on Jobs, Economic Development, and the Economy (September 2, 2021)
Summary
An analysis of ACR 104 (Holden), as amended August 23, 2021, prepared for the Assembly Committee on Jobs, Economic Development, and the Economy, whose Chair is Sabrina Cervantes, for the hearing of September 2, 2021. The subject is a sister state relationship with Punjab, Pakistan. The resolution would extend an invitation to the Legislature of Punjab, Pakistan, to join California in a sister state relationship until December 31, 2026, for economic, educational, environmental, and cultural exchanges. The analysis states that there is no known opposition, and the registered support entry lists the Consulate General of Pakistan, Los Angeles.
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ACR 104
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Date of Hearing: September 2, 2021
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
Sabrina Cervantes, Chair
ACR 104 (Holden) – As Amended August 23, 2021
SUBJECT: Punjab, Pakistan: sister state relationship
POLICY FRAME: This resolution seeks the permission of the State Assembly and the State Senate to
extend an invitation to the Legislature of Punjab, Pakistan, to establish a sister state relationship.
A sister state relationship is a formal declaration between two regions, states, or nations. Such an
agreement is a symbol of mutual goodwill. Additionally, it is an effort to encourage and facilitate
mutually beneficial social, economic, educational, and cultural exchanges. Both the Legislative and the
Administrative branches of the California government have the authority to establish sister state
relationships.
The analysis includes information on the origins of sister state programs, a summary of the Legislature's
sister state relationships, California's trade-based economy, and an economic profile on Pakistan,
including the Punjab Province. There is no known opposition to this resolution.
SUMMARY: Memorializes the intent and commitment of the California Legislature to extend an
invitation to formalize a sister state relationship with the Province of Punjab, Pakistan, for the purpose of
encouraging and facilitating economic, educational, and cultural exchanges that further promote the
prosperity of both regions and to improve the international understanding and goodwill between the
regions. Specifically, this bill:
1) Makes the following findings and declarations:
a) Punjab is Pakistan’s most populous province, with a population of about 110,000,000.
b) Punjab’s capital, Lahore, is a cultural, historical, economic, and cosmopolitan center of Pakistan
where the country’s cinema industry and much of its fashion industry are based, similar to
California.
c) Agriculture continues to be the largest sector of Punjab’s economy. The province is the
breadbasket of the country, similar to California.
d) There are over 250,000 Punjabi Americans in California, many of whom first settled in
California’s central valley to do agricultural work.
e) Punjab has the largest economy in Pakistan. In 2007, Punjab achieved a growth rate of 7.8%.
During the period from 2002–03 to 2007–08, its economy grew at rates between 7% to 8% each
year. During the 2008–09 fiscal year, Punjab’s economy grew at a rate of 6%, substantially faster
than the total gross domestic product growth of Pakistan.
f) A sister-state relationship between the State of California and the Province of Punjab would
promote mutual trade and commerce and increase the potential for educational, environmental,
and cultural relations between the Province of Punjab and the State of California.
2) Resolves the following:
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a) The California Legislature, on behalf of the people of California, extends to the people of the
province of Punjab, Pakistan, an invitation to join with California in a sister state relationship until
December 31, 2026, for the purpose of encouraging and facilitating mutually beneficial economic,
educational, environmental, and cultural exchanges, which will lead to a more indelible and lasting
relationship between Californians and the people of the province of Punjab, Pakistan.
b) Any sister state agreement developed will identify objectives, areas of mutual interest, a list of
potential activities, and an initial list of public and private partners that will help to advance the
purposes of the sister state agreement, including one or more entities that will serve as facilitators
and general points of contact; and be it further
c) The Chief Clerk of the Assembly transmit copies of this resolution to the Governor of California,
to the Governor of Punjab, to the Legislature of Punjab, and to each Senator and Representative
from California in the Congress of the United States.
FISCAL EFFECT: None – The bill was incorrectly keyed fiscal, correction amendments are being
drafted.
COMMENTS & CONTEXT:
1) Origins of the Sister Programs: Sister affiliations involving the US began shortly after WWII and
developed into a national initiative when President Dwight D. Eisenhower proposed the People-to-
People Program at a White House conference in 1956. According to research on Maryland's sister
state webpage, President Eisenhower’s intention was to involve people and organized groups at all
levels of society in personal, citizen diplomacy with the hope that people-to-people relationships,
fostered through sister city affiliations, would lessen the chance of future world conflicts. Many sister
city relationships are coordinated through the nonprofit network Sister Cities International.
2) How are Sister State Programs Structured? States differ from cities in their approach to selecting
and implementing sister state relationships. Some states, such as Hawaii, require a detailed
application from the foreign state wishing to enter into partnership. The application form asks for
information on the prospective partner's economic structure, cultural resources, primary industries,
and foreign trade and investment. Applications are reviewed by the Governor of Hawaii, who refers
applications she or he supports to the Legislature for further review. The Legislature expresses their
approval through the adoption of a concurrent resolution which authorizes the Governor to proceed in
negotiating a sister state agreement with the applicant state.
One recurrent model for managing the sister state relationship is the establishment or designation of a
sister organization. Iowa, for example, has Iowa Sister State, a non-profit, volunteer organization
whose mission is to "develop and implement international programs that promote the interests of the
State of Iowa and its citizens." Activities for each of Iowa's nine sister state relationships is
coordinated through a special committee, which organizes events and exchanges.
Several states have information on their webpages regarding longstanding sister state relationships.
Michigan, as an example, has had a sister state relationship with Shiga Prefecture, Japan, since 1968,
and stills hosts several exchanges per year. For the 40th Anniversary of the sister state relationship
between Hyōgo Prefecture, Japan, and Washington state, the two governors attended several special
events including, "Kobe Day" at a Seattle Mariners baseball game, with 260 delegates from Hyōgo
attending and Governor Toshizo Ido throwing the first pitch.
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Another core component of sister state relationships is education. Michigan and other states often
emphasize educational exchanges, as well as cultural exchanges. South Carolina even offers fee
waivers to foreign students from their sister states who wish to attend public universities.
Many sister state relationships also include economic and business development priorities, as well as
cultural and educational exchanges. The Alberta, Canada, and Jalisco, Mexico, sister state
relationship focuses on enhancing the economic cooperation between the two regions. The Alberta-
Jalisco sister state relationship is guided by the initial and 13 supplemental agreements, including
agreements that support joint research funding on micro- and nanotechnology, e-health, radio-
frequency identification, and value-added food processing.
California has no formal structure for establishing, negotiating, or maintaining sister state
relationships. ACR 105 addresses this lack of structure by requiring the final negotiated sister state
agreement to include all of the following:
Objectives and areas of mutual interest;
A list of potential activities that are contemplated through the enactment of the agreement;
An initial list of public and private partners that will help to advance the purposes of the sister
state agreement; and
Identification of one or more entities that will serve as a facilitator and general point of contact
during the term of the agreement.
3) Leadership Offices of International Relations: Both the Assembly and the Senate maintain
respective offices that serve as the key point of contact for foreign relations and protocol for each
House. The California Senate Office of International Relations (SOIR) was established in 1987, and
the Assembly Office of International Relations and Protocol (AOIRP) was established in 2000.
Through these offices, Legislators find assistance in furthering strong economic and diplomatic ties
between California and the rest of the world.
Both SOIR and AOIRP host international delegations at the State Capitol, as well as facilitate and
occasionally host Member delegations to foreign countries. Over the years, SOIR has also established
special and longer term relationships between California and foreign countries, including the
California-Brazil Partnership and the California-Japan Scholars Program.
While these offices may facilitate trips and other activities with foreign countries, neither SOIR nor
AOIRP have any specific mandated duties in regards to sister state relationships.
4) Sister State Relationships in California: Although SOIR has no mandated duties relative to sister
state agreement, the office does maintain a website that is the only known source for identifying sister
state resolutions the California Legislature has approved. According to the website, the Legislature
has passed 26 resolutions expressing an interest in establishing a sister state/friendship state
relationship. Chart 1 includes a list of currently authorized sister state agreements. It is important to
note that not every resolution authorizing a sister state agreement culminates in a signed agreement.
Chart 1 ̶ California Sister State Agreement Authorizations
Country Region Legislation/ Agreement Year
Argentina Santa Fe Province Resolution Ch. 91 (SCR 6 - Monning) 2015
Australia State of New South Wales Resolution Ch. 52 (SCR 19 - Brulte) 1997
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Brazil Parana State Resolution Ch. 92 (SCR 8 - Costa) 1999
Canada Province of Alberta Resolution Ch. 29 (SCR 8 - Thompson) 1997
Guangdong Province Sister State Agreement 2014
Inner Mongolia Autonomous
China Resolution Ch. 93 (SCR 26 - Costa) 1999
Region**
Sister State Relationship Agreement and
2011
Jiangsu Province Framework Agreement on New Energy Cooperation
Resolution Ch. 66 (SCR 19 - Garamendi) 1985
Egypt Governorate of Cairo Resolution Ch. 130 (SCR 41 - Murray) 1999
El Salvador San Salvador Department Resolution Ch. 103 (SCR 81 - Hayden) 1998
Provence-Alpes-Cote d'Azur
France Resolution Ch. 135 (SCR 115 - Roberti) 1990
Region
Germany State of Baden-Württemberg SR 90 - Pan 2018
Gujarat State Resolution Ch. 13 (SCR 4 - Burton) 2001
India
Punjab State Resolution Ch. 12 (SCR 3 - Burton) 2001
Indonesia Special Province of Yogyakarta Resolution Ch. 62 (SCR 23 - Marks) 1995
Italy Umbria Region Resolution Ch. 39 (SCR 4 - Petris) 1995
Japan Osaka Prefecture* Resolution Ch. 116 (ACR 113 - Vasconcellos) 1994
State of Baja California (Norte) Resolution Ch. 46 (SCR 5 - Kelley) 1999
State of Baja California (Sur) Resolution Ch. 131 (SCR 95 - Torlakson) 2002
Resolution Ch. 70 (SCR 82 - Hueso) 2014
Mexico State of Jalisco
Resolution Ch. 148 (ACR 183 - Firebaugh) 2000
State of Nayarit Resolution Ch. 185 (SCR 81 - Lara) 2017
State of Queretaro Resolution Ch. 110 (ACR 137 - Cortese) 1988
Portugal Region of the Azores Resolution Ch. 124 (SCR 84 - Costa) 2002
Chungcheongnam-do Province Resolution Ch. 33 (SCR 54 - Marks) 1996
Korea Jeju Province Resolution Chapter 80 (ACR 42 – Chu) 2005
Republic of Korea** Resolution Ch. 97 (SCR 6 - Montoya) 1987
Altai Republic Resolution Ch. 45 (SCR 11 - Johnston) 1995
Russia Khanty-Mansiysk Autonomous
Resolution Ch. 87 (SCR 49 - Rosenthal) 1994
District
South Africa Western Cape Province Resolution Ch. 2 (SCR 42 - Murray) 2000
Spain Catalonia Region Resolution Ch. 71 (SCR 71 - Mello) 1986
Taiwan Resolution Ch. 120 (SCR 40 - Polanco) 1983
Areas marked with * denote a Cooperation Agreement
Areas marked with ** denote a Friendship State Relationship
5) Profile on Pakistan: The Islamic Republic of Pakistan (Pakistan) is located in southern Asia,
bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China
in the north. It has a total land mass of 796,095 sq km, making it the 37th largest country in the world.
It has over 1,000 km of coastline. For comparison, Pakistan is just slightly smaller than twice the size
of California.
Pakistan can be divided into three major geographic areas: the northern highlands, the Indus River
plain in the center and east, and the Balochistan Plateau in the south and west. Pakistan is recorded as
having frequent earthquakes which can occasionally be severe, especially in north and west. Flooding
along the Indus River after heavy rains (July and August) is not uncommon.
There are 238.1 million living in Pakistan with a majority of the population located in and around the
Indus River and its tributaries. The largest cities in Pakistan are as follows:
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Karachi - 16.459 million people
Lahore - 13.095 million people
Faisalabad - 3.542 million people
Rawalpindi - 2.281 million people
Gujranwala - 2.290 million people
Islamabad - 1.164 million people
While Urdu is the official language of Pakistan, the CIA World
Factbook reports that only approximately 8% of the population
speaks Urdu. Approximately 48% of the population speaks
Punjabi 48%, 12% Sindhi, 10% Saraiki (a Punjabi variant), 8%
Pashto (alternate name, Pashtu), 3% Balochi, 2% Hindko, 1%
Brahui. English is also spoken and considered the “lingua
franca of Pakistani elite and most government ministries”.
Muslim is the official religion of Pakistan with 96.5% of the population being either Sunni (85-90%)
or Shia (10-15%). About 3.5% of the population is Christian and Hindu.
The executive branch of the Pakistani government is led by a president who serves as the chief of state
and prime minister, who is the head of government. The Cabinet is appointed by the president upon
the advice of the prime minister. The president is indirectly elected by the Electoral College
consisting of members of the Senate, National Assembly, and provincial assemblies for a five-year
term. Presidents are limited to two consecutive terms. President Arif Alvi was elected in September
2018 and Prime Minister Imran Khan was elected by the National Assembly in August 2018.
There is a bicameral Parliament or Majlis-e-Shoora which consists of a 100 member Senate and a 342
seat National Assembly. Senators are indirectly elected by the four provincial assemblies and the
territories' representatives by proportional representation vote. Senators serve six-year terms with
one-half of the membership renewed every three years. Members of the National Assembly serve for
five-year terms. A majority, 272 Members, are directly elected in single-seat constituencies by simple
majority vote. The remaining 70 members (60 women and 10 non-Muslims) are directly elected by
proportional representation vote.
The Supreme Court of Pakistan consists of the chief justice and 16 judges. The justices are nominated
by an eight-member parliamentary committee upon the recommendation of the Judicial Commission,
which is a nine-member body of judges and other judicial professionals, appointed by the president.
According to the CIA World Factbook, “decades of internal political disputes and low levels of
foreign investment have led to underdevelopment in Pakistan…Despite some progress in recent years
in both security and energy, a challenging security environment, electricity shortages, and a
burdensome investment climate have traditionally deterred investors. Agriculture accounts for one-
fifth of output and two-fifths of employment. Textiles and apparel account for more than half of
Pakistan's export earnings…
“In an effort to boost development, Pakistan and China are implementing the "China-Pakistan
Economic Corridor" (CPEC) with $60 billion in investments targeted towards energy and other
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infrastructure projects. Pakistan believes CPEC investments will enable growth rates of over 6% of
GDP by laying the groundwork for increased exports. CPEC-related obligations, however, have
raised IMF concern about Pakistan’s capital outflows and external financing needs over the medium
term.”
Pakistan GDP in 2019, based on purchasing power parity, is estimated to be over $1 trillion ranking it
25th highest in the world. Over 56% of GDP is driven by service sectors, agriculture (24.4% in 2016),
and industry (19.1% in 2016). Top agricultural products include sugar cane, buffalo milk, wheat,
milk, rice, maize, potatoes, cotton, fruit, and mangoes/guavas. Industrial production is led by textiles
and apparel, food processing, pharmaceuticals, surgical instruments, construction materials, paper
products, fertilizer, and shrimp.
There are 61.71 million (2017) workers in the Pakistani labor force, much of which is exported to
other countries, primarily to the Middle East. Approximately 42.2% of jobs are in agriculture, 35.1%
in services, and 22% in industry.
In 2019, Pakistan exported $31.5 billion in goods, including textiles, clothing and apparel, rice, leather
goods, and surgical instruments. Top export markets in 2019 include: US 14%, China 8%, Germany
7%, and the United Kingdom 6%.
California exported $155.8 billion in goods in 2020. Over $229.3 million in California goods were
exported to Pakistan in 2020, making the state the 3rd largest exporter to Pakistan in the US. Pakistan
is California’s 53rd largest export market in 2020. Chart 2, shows California’s top exports to Pakistan
for 2016 through 2020.
Chart 2 – California Goods Exports to Pakistan, 2016-2020 (in dollars)
Item 2016 2017 2018 2019 2020
Total for All Exports $301,191,846 $278,439,165 $191,680,559 $20,114,5780 $229,363,785
Agricultural Products $88,483,961 $98,797,174 $76,778,006 $82,332,254 $94,136,800
Waste and Scrape $28,911,114 $47,699,787 $25,660,442 $31,222,931 $50,680,222
Food Manufacturing $46,229,961 $42,186,321 $27,888,501 $29,355,619 $21,832,469
Transportation Equipment $13,901,988 $17,752,115 $8,765,168 $7,706,765 $15,918,496
Computer and Electronic Products $20,570,580 $28,874,474 $17,547,488 $22,889,806 $11,984,094
Machinery, Except Electrical $75,399,856 $9,386,546 $7,076,678 $6,856,617 $10,722,676
Source: International Trade Administration, accessed August 31, 2021
Pakistan imported $42.2 billion in goods in 2019. In 2019, the largest categories of imports included
refined petroleum, crude petroleum, natural gas, palm oil, and scrap iron. Key import partners in 2019
include China (28%), United Arab Emirates (11%), and the US (5%).
The US imported $3.8 billion in goods from Pakistan in 2020. Imports into California from all
nations were valued at $398.8 billion in 2020. California imported the highest in dollar value of
goods ($446.8 million) from Pakistan than any other US state in 2020. Chart 3 provides additional
information of California’s import activity with Armenia for 2016 through 2020.
Chart 3 – California Goods Imported from Pakistan, 2016-2020 (in dollars)
Item 2016 2017 2018 2019 2020
Total of All Imports $486,241,458 $481,001,770 $445,520,102 $497,238,475 $446,875,925
Apparel Manufacturing Products $201,992,884 $193,353,500 $179,611,073 $198,774,170 $169,882,124
Textile Mills Products $199,591,852 $195,733,363 $165,870,154 $179,162,981 $133,785,560
Textiles & Fabrics $16,899,393 $20,515,816 $18,493,280 $25,266,016 $38,348,584
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Chemicals $621,586 $4,197,747 $5,924,002 $20,427,848 $27,572,130
Food Manufactures $21,155,913 $19,896,747 $18,927,051 $19,241,908 $24,977,765
Miscellaneous Manufactured
$23,607,006 $21,867,726 $27,587,838 $29,103,872 $24,636,797
Commodities
Minerals & Ores $3,424,551 $4,623,028 4,265,088 $4,608,381 $7,721,653
Source: https://tse.export.gov/stateimports/TSIReports.aspx Accessed August 31, 2021
According to the CIA World Factbook, there is severe localized food insecurity due to “population
displacements, economic constraints, and high prices of the main food staples.” COVID-19 has
intensified the impacts of recurrent natural disasters, rising food prices, and limited employment
opportunities. Pakistan has experienced severe floods in August 2020 in Sindh Province which
affected the incomes of 2 million people and caused severe damage to housing and infrastructure.
Pakistan has also served as hosts for an ever increasing number of registered and unregistered Afghan
refugees. The World Factbook states that most of these refugees “are in need of humanitarian
assistance and are straining the already limited resources of the host communities.”
6) Spotlight on Punjab, Pakistan: Punjab is located in eastern Pakistan and has an international border
with India. It is largest province in Pakistan, based on population. There are over 110 million people
living in Punjab, equivalent to 52.95% of the national
population. Approximately 36.7% of the population
lived in urban areas in 2017, up from 27.6% in 1981.
Economic activity within Punjab represented 54.2% of
Pakistani economy in 2017-18. The per capita income
in Punjab is 2% higher than the national average. GDP
growth in Punjab was 4.9% annually between 2012-13
and 2017-18. Approximately 62.4% of the economy is
comprised of service industries, 20% agriculture, and
17.6% industry.
According to the Punjab Growth Strategy 2023, the
province’s economy has a higher share of private and
public investment (17.7% v. 16.4% of GDP) and net
income from abroad than the nation as a whole. However, the industrial sector in Punjab is slightly
less than the nation (20%) and the net trade deficit of Punjab is somewhat higher than that at the
national level.
Punjab has a higher labor force participation rate than the national average, which is primarily
attributable to the higher participation rates of females in Punjab. Chart 4 provides comparative data
on the distribution of labor in Punjab as compared to Pakistan. Between 2013-14 and 2017-18,
Punjab’s labor average participation rate was 48.4 as compared to national rate of 44.9. Punjab also
has a higher employment rate than the country average.
Chart 4 – Sectoral Distribution of Employment, Punjab and Pakistan, 2012-13 and 2017-18
Punjab Pakistan
Industry Sectors 2012-13 2017-18 2012-13 2017-18
Agriculture, Forestry, and Fishing 44.7% 40.0% 43.7% 38.5%
Manufacturing 15.4% 17.7% 14.1% 16.1%
Construction 7.4% 7.0% 7.4% 7.6%
Wholesale and Retail Trade 15.3% 14.2% 14.4% 14.9%
Transport and Communications 4.4% 4.9% 5.5% 6.2%
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Community, Social, and Personal Services 10.8% 10.8% 13.3 14.7%
Other Sectors 2.0% 5.4% 1.6% 2.0%
Total 100% 100% 100% 100%
Source: Punjab Growth Strategy 2023
Based on data obtained during the development of the Punjab Growth Strategy 2023, Punjab has the
greatest comparative advantage in three sectors - major crops (37.5%), small-scale manufacturing
(26.3%), and cotton ginning (24%). Other sectors with significant comparative advantage include
livestock, social and community services, transport, storage and communications, minor crops, and
construction. The report also identifies three emerging sectors of comparative advantage, which are
finance and insurance, wholesale and retail trade, and public administration and defense.
Among other key recommendations, the Punjab Growth Strategy 2023 calls for a strategic shift in
government development priorities by moving away from mega structures to investing more in human
capital, water, small- and medium-size businesses, and on attaining regional balance. The vision for
the Punjab Growth Strategy 2023 is for “A globally connected and competitive, equitable, culturally
vibrant and technologically advanced Punjab with sustainable economic growth driven through a
dynamic private sector, an efficient public sector, rich and productive human capital and, a regionally
equalized development footprint by 2023.”
7) Current Trade and Investment-Related Activities: While sister state agreements are not intended
to exclusively promote cross border trade and investment, economic development is generally an
underlying consideration. California’s trade and foreign investment activities are statutorily placed
within the Governor’s Office of Business and Economic Development (GO-Biz).
The GO-Biz International Trade and Investment Office is led by a Deputy Director and staffed by a
foreign direct investment (FDI) specialist, three regional trade and investment representatives
(regional representatives), and a special advisor for international affairs and trade. GO-Biz hosts a
monthly conference call and publishes a monthly newsletter to keep connected to economic
developers, businesses involved in trade, foreign investment professionals, and members of the
consular corp.
The three regional representatives each cover one or more of the major trade regions in the world.
Trade activities in Asia are assigned to one regional representative; another trade representative covers
Europe, the Middle East, and Africa; and the third trade representative oversees Mexico and Central
and South America. While based in California, the regional representatives have the authority to
travel in order to solicit investment leads, support California businesses in regional trade shows, and
undertake other activities designed to increase export opportunities and FDI. Total funding for the
three positions in 2019-20 was $592,000: $427,000 in wages and benefits and $165,000 in operating
expenses, including $72,000 for travel. Funding for the overall International Affairs and Trade unit
within GO-Biz amounted to $992,007 for Fiscal Year 2019/2020.
In implementing its trade and foreign investment activities, GO-Biz also relies on a “service desk”
model, which is described by GO-Biz as partnering with local organizations to make physical space
available to California Trade and Investment Specialists at no cost to the state. The GO-Biz regional
representatives leverage the relationships of the service desk hosts to maintain the state’s global
presence. The state currently operates three trade service desks, including one in Yerevan, Armenia,
which was officially launched on June 21, 2021. The Armenia trade and services desk serves as a
resource to GO-Biz’ trade and investment activities throughout Europe.
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The Shanghai, China, trade service desk opened in 2013 to support trade and investment leads
originating from within China. Mexico is the location of California’s third trade service desk, which
opened in October 2019 and now supports trade activity throughout the Americas.
The federal Small Business Administration supports California’s trade and investment program
through its State Trade Expansion Program (STEP). In calendar year 2020, California received
$600,000 in STEP, which required a committed match of $323,076. Chart 5 provides additional
information on the seven STEP-supported international activities in 2020.
Chart 5 – 2020 California State Expansion Program Activities
Date Activity Companies supported STEP funds allocated
Jan 2020 Arab Health Show 10 $75,000
Feb 2020 Singapore Airshow 4 $24,000
Aug 2020 Chile Virtual Trade Mission 19 $21,600
Sept 2020 Colombia Virtual Trade Mission 24 $21,600
Sept 2020 Mexico Virtual Trade Mission 22 $21,600
Oct 2020 Virtual Trade Show of the Americas 6 $2,280
On-going Individual Company Export Stipends 10 $30,000
Total: 95 $196,080
Source: GO-Biz, accessed April 23, 2021
In January 2020, GO-Biz joined other trade and investment partners to launch the California Export
Training Network (Training Network) to expand the state’s exports and export training efforts. With a
goal of promoting, supporting, and increasing the number of exporters in all regions of California, the
Training Network includes over 14 organizations, including, but not limited to:
California Manufacturing Technology Consulting (CMTC)
Economic Development Collaborative (EDC), Ventura County
Fresno Center for International Trade Development
GlobalSF
Inland Empire Center for Entrepreneurship, CSU San Bernardino
International Trade Center powered by the California Community Colleges
Los Rios CCD Center for International Trade Development (now closed)
Mission College Business and Workforce Engagement
Northern California World Trade Center
Butte College Small Business Development Center (SBDC)
North Coast Small Business Development Center (SBDC)
Tuolumne County Economic Development Department
World Trade Center San Diego
The Training Network is supported by a number of business development partners, including:
U.S. Commercial Service, U.S. Department of Commerce
U.S. Small Business Administration Office of International Trade
Export-Import Bank of the United States
California Department of Food and Agriculture
California Office of the Small Business Advocate
California Small Business Development Centers
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According to GO-Biz, like many foreign trade activities during COVID-19 pandemic restrictions,
some Export Training Network partners have continued to provide export-related technical assistance,
while others have had to limit support given funding and staffing impacts related to COVID-19.
Overall, GO-Biz believes that the network partners remain committed and are slowly moving back
toward normal operations. The network lost one partner during COVID-19, when the Los Rios
Community College District’s Center for International Trade Development closed their doors in
August 2020.
In addition to the International Trade and Investment Office, GO-Biz has historically used a service
delivery model that flows across and through different GO-Biz units, depending on the business’
needs. As an example, a foreign company planning to expand in California may have initially become
acquainted with GO-Biz through an in-bound trade mission hosted by the International Trade and
Investment Office but may ultimately also be assisted by the California Business Investment Program
and the Permit Assistance Office.
8) International Affairs and Trade Development Interagency Committee: In February 2019,
Governor Newsom supplemented the statutory role of GO-Biz by issuing executive order N-19-08
which designated Lieutenant Governor Eleni Kounalakis as the Governor’s top representative for
international affairs and trade development. As part of those duties, Lieutenant Governor Kounalakis,
who formerly served as the United States Ambassador to Hungary, chairs a cabinet-level International
Affairs and Trade Development Interagency Committee (Interagency Committee). The Interagency
Committee is vice chaired by the Governor’s Chief Economic and Business Advisor Dee Dee Myers,
who also serves as the director of GO-Biz.
The executive order charges the Interagency Committee with advising the Governor and facilitating
the coordination of state activities relating to the promotion and expansion of trade, investment, and
international relations. Other members of the Interagency Committee include representatives of the
California Energy Commission, California Department of Food and Agriculture, Governor’s Office of
Emergency Services, California Environmental Protection Agency, California Natural Resources
Agency, California Transportation Agency, Visit California, and GO-Biz. The work of the
Interagency Committee is supported by the GO-Biz International Trade and Investment Office.
9) California’s Trade Economy: International trade and foreign investment are important components
of California’s $3.1 trillion economy (2019 most recent data) supporting nearly 5 million California
jobs (2020 most recent data). The importance of trade to the California economy is increasing, as
reflected in the percentage of California jobs tied to trade having more than tripled from 1992 (10.6%)
to 2020 (nearly 30.3%).
California’s largest industry sector by employment is trade, transportation, and utilities, which
encompasses everything from major retail outlets, to import-export businesses, to transportation and
warehousing. Workers in trade-related jobs earn on average 15% to 20% higher wages than jobs in
industries not tied to trade (2015 most recent data). California is second in the nation, just behind
Texas, in the number of export-related jobs (2016 most recent data).
Advances in transportation and communication technologies are encouraging the development of
previously undeveloped markets and expanding multinational business opportunities for California
firms. With more than 95% of consumers located outside the US and emerging economies
experiencing a growing middle class, accessing these global markets is key to California’s continued
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economic growth. Today, four of California’s top five exports include component parts, which leave
the state to be combined and assembled into final products in foreign countries.
Chart 6, shows data of the export of goods to the state’s top six trade partners, based on origin of
movement. [Please note that federal reporting separates data from China and Hong Kong.]
California’s largest export market in 2020 was Mexico, who received over $24.0 billion in California
products. Top-ranking export destinations not shown on the chart include Germany, the Netherlands,
and the United Kingdom.
Chart 6 – California Export of Goods, 2013-2020 (billions of dollars)
Partner 2013 2014 2015 2016 2017 2018 2019 2020
World $168.1 $173.8 $165.3 $163.2 $171.9 $178.1 $173.7 $155.8
1 Mexico $23.9 $25.4 $26.7 $25.2 $26.7 $30.7 $27.8 $24.0
2 Canada $18.8 $18.3 $17.2 $16.2 $16.8 $17.6 $16.6 $16.0
3 China $16.2 $16.0 $14.3 $14.3 $16.4 $16.3 $15.8 $15.0
4 Japan $12.7 $12.2 $11.7 $11.7 $12.8 $13.0 $11.8 $10.5
5 South Korea $8.3 $8.6 $8.6 $8.2 $9.5 $9.9 $9.1 $9.7
6 Taiwan $7.5 $7.4 $7.7 $6.9 $6.3 $6.8 $7.2 $7.3
Source: International Trade Administration, accessed 3/26/21
Between 2006 and 2020, the export of California services increased 59.8%, increasing from $422
billion to $705 billion in services. California’s largest export service sectors in 2020 included:
Other Business Services at $183.1 billion
Financial Services at $144.3 billion
Charges for the Use of Intellectual Property (not included elsewhere) at $113.7 billion
Travel Services at $72.8 billion
Telecommunications, Computer, and Information Services at $56.6 billion
Transport Services at $56.7 billion
The United Kingdom has been California’s largest service export market, having receiving $62.6
billion in services in 2020 and supported an estimated 427,000 California jobs in 2015 (most recent
data). California’s second largest service export market has been Canada, with $53.6 billion in
services in 2020 and having supported 360,000 jobs in 2015 (most recent data). Service exports from
California to Mexico ranked seventh among all countries, with $23.4 billion in services exported in
2020, and having supported 201,000 jobs in 2015 (most recent data).
In addition to exporting goods and services, the California economy benefits from foreign-owned
firms. The Federal International Trade Administration estimates that in 2015 (most recent data),
769,200 California workers have benefited from jobs with foreign-owned firms.
California has had the highest level of employment in foreign-owned firms in the nation since at least
1997. In 2015 (most recent data), jobs in California foreign-owned firms represented 5.1% of all
private sector jobs in the state, up from 4.1% in 2013. Along with employment, foreign-owned firms
own more property, plants, and equipment in California than in any other state.
10) Related Legislation: Below is a list of bills from the current and prior sessions. Not every
authorization to establish a sister state relationship has been consummated.
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a) ACR 105 (Holden) Relations with Syunik, Armenia: This bill memorializes the intent and
commitment of the California Legislature to extend an invitation to formalize a sister state
relationship with Syunik, Armenia, for the purpose of encouraging and facilitating economic,
educational, and cultural exchanges that further promote the prosperity of both regions, and to
improve the international understanding and goodwill between the regions. Status: Pending in the
Assembly Committee on Jobs, Economic Development, and the Economy.
b) ACR 100 (Alejo) Trade Relationship with El Salvador: This bill memorializes the Legislature's
commitment to work cooperatively with the Governor's Office of Business and Economic
Development on trade promotion and foreign investment activities that enhance the state's
economic relations with El Salvador, as specified. Status: Adopted by the Legislature, Resolution
Chapter 172, Statutes of 2014.
c) SCR 6 (Monning) Sister State Relationship with Santa Fe, Argentina: This bill memorializes
the Legislature's desire to recommit to the formalizing of a sister state relationship between
California and the Province of Santa Fe, Argentina, for the purpose of promoting economic
growth and well-being of small, medium, and large corporations and by increasing their potential
trade and investment within the State of Jalisco. Status: Adopted by the Legislature, Resolution
Chapter 70, Statutes of 2014.
d) SCR 81 (Lara) Sister State Relationship with Nayarit, Mexico: This bill memorializes the intent
and commitment of the California Legislature to extend an invitation to formalize a sister state
relationship with the State of Nayarit, Mexico, for the purpose of encouraging and facilitating
economic, educational, and cultural exchanges that further promote the prosperity of both regions
and to improve the international understanding and goodwill between the regions. Status:
Adopted by the Legislature, Resolution Chapter 85, Statutes of 2017.
e) SCR 82 (Hueso) Sister State Relationship with Jalisco, Mexico: This bill memorializes the
Legislature's desire to recommit to the formalizing of a sister state relationship between California
and the State of Jalisco, Mexico, for the purpose of promoting economic growth and well-being of
small, medium, and large corporations, and by increasing their potential trade and investment
within the State of Jalisco. Status: Adopted by the Legislature, Resolution Chapter 70, Statutes of
2014.
REGISTERED SUPPORT / OPPOSITION:
Support
Consulate General of Pakistan, Los Angeles
Opposition
None on File
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090
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