THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, November 5, 1996 TAG: 9611050004
SECTION: FRONT PAGE: A14 EDITION: FINAL
TYPE: OPINION
SOURCE: By GEORGE ALLEN
LENGTH: 83 lines
In 1987, when President Reagan visited Berlin and called on then-Soviet President Mikhail Gorbachev to ``tear down this wall,'' he did so out of a profound belief in, and dedication to, the principles of liberty and freedom. President Reagan also understood that opportunity and prosperity are the by-products of a vibrant free-enterprise system.
Since he spoke those famous words, the oppressive Iron Curtain has fallen and a new era of opportunity and prosperity has begun to emerge throughout Central Europe.
Recognizing the enormous potential of these emerging markets, I recently led a trade mission to the Czech Republic, Austria, Poland, Hungary and France. I was accompanied by more than 20 business executives from across the commonwealth who share my excitement about this part of the world and are laying the groundwork for increased trade between Virginia and these countries. Because of their involvement, the trade mission proved to be very successful.
Among the Virginia companies initiating agreements during the mission were RADVA in Radford, Nuline Industries in Fredericksburg, the Virginia Tech Library Systems in Blacksburg, AMF Bowling in Richmond and the Virginia Port Authority. In fact, at the conclusion of the trade mission, contracts and agreements totaling more than $21 million had been secured.
Our objective was to market Virginia products and professional services and promote business opportunities for companies here in the commonwealth. These countries were specifically targeted because, with the exception of France, our trade with them has historically been relatively small, and Virginia is uniquely positioned to break into these markets as the economic forces of capitalism are being unleashed.
Virginia's trade with the Czech Republic increased more than 850 percent from 1994 to 1995 and now represents almost 10 percent of the entire U.S. exports to that nation. Exports to Hungary have increased nearly 70 percent in this same time period. Currently, Virginia exports to these two countries approach $40 million annually, yet there is still great untapped potential in these markets. The trade mission also included a stop in France, with whom Virginia has enjoyed a long and prosperous trading relationship since our quest for independence began in 1776. France is Virginia's 14th-largest export destination with $154 million in 1995, and we are home to 65 French companies with $436.4 million in investment that employ 7,625 people.
There were five major goals for this fall's trade mission:
1. Provide Virginia business executives better access to, and understanding of, Central and Eastern European markets.
2. Promote Virginia as a location for investment.
3. Promote increased international air and steamship service to Virginia.
4. Market Virginia as a unique destination for tourism and travel.
5. Promote Virginia mineral, agricultural and forestry products.
The delegation had important meetings with many foreign business leaders and government officials.
In Graz, Austria, we met with Euro-star, a joint venture of Chrysler and an Austrian car company, to promote an increase in the shipment of parts through Virginia's ports. Eurostar officials praised the service they already receive from the Virginia Port Authority and announced their intentions to increase their imports in the near future. These additional shipments will create at least 21 new jobs in Virginia and result in 3,000 new containers moving through Virginia's ports. We also joined executives from several ship lines to encourage them to begin service at Virginia's ports, thus supporting even more jobs and boosting Virginia's international trade.
While the delegation was encouraged by all of our new business opportunities, we were also inspired by the people we encountered, who after years of living under totalitarian regimes are now embracing freedom and generating prosperity. In the Czech Republic we met the sales representative for Genicom, a company with a large presence in Virginia, who only a few years ago had been a bellboy at a Prague hotel. Another meeting, held in a former Gestapo headquarters, was a discussion with Czech trade officials addressing the importance of reducing tariffs to make Virginia paper products more competitive. The triumph of capitalism and free-market opportunities were a striking contrast to the failed relics of totalitarian rule represented by that building.
As the ideals of free people and free markets continue to prosper and international competition becomes even more aggressive throughout Eastern Europe, Virginia is well-positioned for future success in the region. The commonwealth will remain a leader in recruiting even more jobs and investments by laying the groundwork early and sending a message that ``Virginia is Open for Business!'' MEMO: George Allen is governor of Virginia. by CNB