By Brian E. Clark
WisBusiness.com
Peter Beitzel, a Metropolitan Milwaukee Association of Commerce vice president, has been on more than half a dozen trade missions to Asia, Europe, the Middle East and Latin America.
He’s now packing his bags for a similar trip. He’ll be leaving Friday, accompanying Gov. Jim Doyle and more than 70 other state officials and business leaders for 11 days in Japan and China. Others in the group include Ulice Payne, president of Addison Clifton LLC; Tom Loftus, UW regent, former ambassador to Norway and board member of CellCura, Inc.; and Mary Burke, state Commerce Secretary.
To highlight the importance of trade with China, Doyle announced a $5 million deal on Tuesday by Oshkosh Truck to sell six fire trucks to the Beijing Capital International Air. Today, the governor is at Madison’s TomoTherapy Inc., to celebrate that firm’s first sale of a $3.5 million cancer treatment machine in China.
Though relatively small in total dollar figures, analysts say these sales are important because they could lead to many more.
Beitzel, who went to South America with former Gov. Tommy Thompson, said trade missions can be grueling, but are worth the time and money. He said he figures the cost for him will run well over $5,000.
That includes a $1,500 fee to pay for receptions and the majority of Doyle and other government leaders’ costs. Some critics have complained that firms are buying influence by covering the trip expenses for the governor. This is Doyle’s fifth international trade mission and first of his second term.
“From my point of view, there aren’t any drawbacks to going because they strengthen existing relationships and help open new markets,” said Beitzel, who heads MMAC’s international efforts.
“Having the governor head these missions is really important, especially in China. But I wouldn’t really described these things as fun. They are not a tour. They can be pretty grueling.”
China is Wisconsin’s fastest-growing market. In 2004, the Badger State exported goods to China worth $583 million. By last year, that figure had climbed to $870 million. Exports to Japan are also up, rising from $625 million in 2004 to $739 million last year.
Beitzel said when he traveled to Brazil with Thompson, he watched as the former governor corralled a top executive from country’s big Brahma Brewery and told him he should talk to a Wisconsin label maker who was on the trip.
“I don’t remember if it resulted in a deal,” he said. “But instead of talking to a fourth-level person at Brahma, the Wisconsin guy ended up dealing with the No. 2 person.”
In Tokyo, the Wisconsin contingent will attend the Midwest U.S.-Japan Association conference that will draw top Japanese business leaders. Next year, the conference will be in Milwaukee.
“The last time we had it was 1991, but it will bring key people here so we can showcase our strengths,” he said.
In China, Wisconsin executives will be looking for potential companies to participate in joint ventures. Similarly, law firms will be looking for new clients there, he said.
“We will also be talking to them about the economic development zone for foreign investment that the Homeland Security Department approved for the Milwaukee 7 Region,” he said. (The Milwaukee 7 consists of Kenosha, Milwaukee, Ozaukee, Racine, Waukesha, Washington and Walworth counties.)
The program, an “Immigrant Investor Pilot Program” offers visas to foreigners who put in $1 million ($500,000 in high unemployment areas) to and save or create at least 10 jobs.
“Visas are hard to get now and very important to the Chinese,” Beitzel said.
Finally, Beitzel said the subject of Yi Jianlian, the seven-foot power forward from China who signed with the Milwaukee Bucks just last week.
“Yi is huge over there,” he said. “The hits on the Bucks Web page jumped by the hundreds of thousands because of him. Can you imagine how big it will be when Houston and Yao Ming come here? And Yi is supposed to be better than Yao Ming.”
For Mary Burke, head of the state’s Commerce Department, this will be her third trade mission with Doyle.
“I joined the Doyle administration shortly before Mexico,” said Burke, who opened the Trek Bicycle company’s European office and made trips to Asia for the company.
“I’m familiar with the territory (Asia), but the schedule and the purpose are different,” she said.
Doyle and Burke will be meeting investors, promoting Wisconsin companies and the numerous products they make, the secretary said.
“We already sell a lot over there,” she said. “But there are many more possibilities.
“China has the fastest growing economy in the world and they need exactly the kinds of products we excel in to help build their economy and modernize their economy and modernize their infrastructure,” she added.
She said Doyle may also bring up rules that prevent Harley-Davidson’s big motorcycles from being ridden in the inner sections of Beijing.
But she said he will not discuss recent recalls of Chinese products that have ranged from tires to toys to pet food.
“We’ll let Washington handle some of those other sticky issues that are out of the governor’s purview,” she said. “We’ll focus on issues we can do something about like increasing sales of Wisconsin products in China.”
Canter, Doyle’s spokesman, said the governor is bullish on increasing exports and noted that sales abroad have increased by 60 percent since Doyle began his first term.
“We are going there to seize opportunities,” he said.
“Wisconsin businesses and academic institutions already have rich relationships. We are going there to make new friends and finalize trade agreements, like one with Oshkosh. But there is much more to do.”
At the same time, he said Doyle will be staying in contact with Madison and the ongoing budget negotiations.
“He’ll be talking to senior officials daily,” Canter said. “He hopes they will have something for him when he returns.”
