Economic Development and Trade

CSG Midwest
In 2015, lawmakers in North Dakota passed legislation (SB 2057) requiring the legislature to undertake an evaluation of 21 of the state’s tax incentive programs at least once every six years. According to Pew’s Business Incentives Initiative, North Dakota is one of 21 states (four in the Midwest; see map at right) that have passed laws since 2012 requiring regular evaluations of tax incentive programs offered by the state.

Foreign direct investment, or FDI, is a vital component of states’ economies, helping build new industries and supporting nearly 6.4 million jobs nationwide.

But attracting foreign investment is increasingly difficult, said experts during Thursday’s “Best Practices in Attracting Investment” session, presented by the State International Development Organizations, or SIDO, at the 2016 CSG National Conference in Colonial Williamsburg, Virginia.

CSG South

The impasse in U.S.-Cuba relations has spanned 10 U.S. presidents, a failed invasion attempt, a nuclear missile crisis and witnessed countless asylum seekers. The tumultuous relationship, which has its roots in the Cold War, is characterized by a dual-pronged U.S. policy emphasizing economic and diplomatic isolation of the island nation.

Despite ongoing economic sanctions, the United States has emerged as a major exporter of agricultural goods to Cuba, which imports up to 80 percent of its food. Given Cuba's geographic and economic position, states in the Southern region of the United States have competitive export advantages in terms of production, quality, logistics and proximity. This SLC Regional Resource examines existing and future agricultural export opportunities for member states in the Southern Legislative Conference.

CSG Midwest
Buy America requirements, provisions added to federal legislation to require domestic content when purchasing materials for government-supported projects, are showing up more regularly in major bills passed by the U.S. Congress.
The most recent example of this trend came in September, when the U.S. Senate approved its version of the comprehensive Water Resources Development Act. The legislation would mandate that only American-made iron and steel products be used in drinking water infrastructure projects that receive funding from a federal revolving-loan program.
For supporters such as U.S. Sen. Tammy Baldwin of Wisconsin, the rationale for these domestic content requirements is this: If taxpayer dollars are going to the projects, why not make sure that the money goes to American workers, foundries and mills?
But in seeking ways to protect and expand domestic job opportunities, Buy America (or “Buy American”) can complicate another part of the U.S. economy — the integrated supply chains that have developed across the U.S. and Canadian borders. In this type of market, a product or piece of equipment may be ready for sale only after crisscrossing the border multiple times. Domestic content requirements, then, can disrupt the way some products are made.
CSG Midwest
Using a site where B-24 bombers were made during World War II in a factory built by Henry Ford, Michigan hopes to build on its heritage as a hub of automotive manufacturing and innovation and become the world’s leader in autonomous vehicle technology.
In July, citing the creation of more and better jobs in the state’s thriving automotive industry, Gov. Rick Snyder announced the approval of $17 million in startup funds for the creation of the American Center for Mobility in Ypsilanti.

On Sept. 2-8, a CSG-sponsored delegation of state leaders visited China to discuss regional policy issues and learn about bilateral relations. Over the course of the six-day trip, the delegation met with Chinese officials from the provincial, city and local levels in Beijing, Jinan and Shanghai. Additionally, the delegation met with Chinese nonprofit leaders to discuss cultural and social exchange programs and participated in an international convening of sister cities.

The Obama Administration announced yesterday awards totaling $38.8 million for 29 economic and workforce development projects across seven states – Alabama, Kentucky, Ohio, Pennsylvania, Texas, Virginia, West Virginia – to assist communities negatively impacted by changes in the coal industry.

CSG Midwest
Fourteen years after a binational agreement between Canada and the United States led to the use of preclearance facilities at select airports, a legislative push is on to expand the program to other modes of travel between the two countries. These facilities allow people traveling to the United States (U.S. citizens and residents, as well as foreign nationals) to clear U.S. immigration and customs from their departure point rather than their arrival point. They currently operate at eight Canadian airports.
CSG Midwest
Michigan had the strongest economic growth in the Midwest between the last three months of last year and the first quarter of 2016, recently released federal data show. Total gross domestic product in the state rose by 2.6 percent over that period, with increases in durable-goods manufacturing leading the way. According to the U.S. Bureau of Economic Analysis, only six U.S. states outpaced Michigan in GDP growth.

In 2015, the U.S. exported over $56 billion in merchandise to the United Kingdom. That represents nearly 4 percent of all U.S. exports and makes the U.K. the fifth largest export market for the U.S. After
hitting a 10-year low in 2013, exports have been on the rise to the U.K. for the past two years, but recent political developments could put those gains at risk.

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