Capital Chatter: Relationships matter in business and politics

Published 5:00 pm Thursday, October 27, 2022

Why the heck did Gov. Kate Brown fly off to Asia for a 12-day trade mission this month, especially since she’ll be leaving office in January?

I asked Brown that during the 20-minute press conference she held via Zoom from Tokyo on Tuesday. Even if the trip were valid, the timing certainly seemed odd.

This is election season for her fellow Democrats. President Joe Biden was in town while Brown was gone, although California Gov. Gavin Newson also bypassed Biden’s appearances in that state. Brown is the lamest of lame political ducks. Democrat Tina Kotek, whom Brown has endorsed, now has joined the other gubernatorial hopefuls – independent Betsy Johnson and Republican Christine Drazan – in blasting Brown’s record, and the governor wasn’t around to defend herself.

But relationships matter in business (as well as politics and everywhere else).

The late Gov. Vic Atiyeh, who is being remembered this political season as Oregon’s last Republican governor, was derided as “Trader Vic” for his international forays. Yet those connections, and his persistence with the Legislature, helped Oregon recover from the 1980s recessions, diversify the economy and develop the Silicon Forest. The Oregon Encyclopedia says of Atiyeh, “His personal relationships with heads of state and company leaders raised Oregon’s profile as a place for major investment, just as California was becoming too expensive for many firms.”

Brown deservedly credits Atiyeh for opening Oregon’s door to Asia. Now, she noted, Oregon governors typically take annual trade trips “to assist with economic development opportunities.”

“Asia is a particularly strong market for us, particularly in the semiconductor industry and the agricultural industry. So we thought it was important, given that both Korea and Japan are just opening up now – literally, Japan just opened up two weeks ago – to renew and rekindle the relationships we developed in our last mission in 2019,” she said.

“Because of the pandemic, we haven’t had the opportunity to travel to Asia. And as you know, Oregon is one of the most trade-dependent states in the entire country.”

Exports fuel much of Oregon’s economy – $29.9 billion in 2021. A third of those exports went to China, followed by Canada, Malaysia, South Korea, Israel and Japan. But whereas Japan remained Oregon’s No. 6 export destination this year, South Korea had fallen off to No. 7 as of August.

Brown said reconnecting with Asian trade partners was important for setting up the next governor for success. That makes sense. Foreign trade is an area where the state seems to have done well during her tenure. Oregon is among only six states that experienced export growth during the pandemic.

South Korea is Oregon’s third-largest export market for food and agriculture products, and the largest market for fresh blueberries. The Oregon delegation talked with Korean leaders about allowing the importation of blackberries and strawberries.

I asked Brown what she learned about Oregon from the trip.

“Everywhere we went, folks talked about Oregon blueberries. And they’re being very creative in their use, from every morning for breakfast to making sure they’re used in treats, such as frozen yogurt pops and, of course, yogurt and I suspect a little bit of ice cream,” she said. “I was just blown away.”

Machinery is the top export to South Korea. Computer and electronic products lead the way to Japan.

The 41-delegation included representatives from the governor’s staff, Business Oregon, Oregon Wine Board, Travel Oregon, Oregon Raspberry and Blackberry Commission, Oregon Blueberry Commission, AC Foods/Firestone Pacific Foods, Oregon Berry Packing, Willamette Valley Fruit Co., Norris Blueberry Farms, Oregon grass seed commissions, Oregon Department of Agriculture, Prosper Portland, University of Oregon, Oregon State University and Port of Portland.

The delegation also held discussions about the semiconductor industry, education, Oregon wines and a host of other topics. Will those pay off?

That, as with other aspects of economic development, may prove difficult to assess accurately. No deals were announced, whether for Oregon companies to expand business in Asia or for foreign companies to invest in Oregon. However, relationships need tending and nurturing.

I asked about the cost of the trip and have not heard back.

Next up, Gov. Brown apparently will lead a November trade mission to Vietnam, Oregon’s eighth-largest export market. Meanwhile, the state Agriculture Department is part of a USDA trade mission to Nairobi, Kenya, Zanzibar and Tanzania. Down the road, Business Oregon is planning for a March aviation tradeshow in Australia.