Port discusses future funding for Chinese trade program

The Port of Tacoma and city of Tacoma might see shining prospects from investing in a trade pilot project with China. However, the future of the program might dim if alternative sources of funding cannot be found.

The Fuzhou-Tacoma trade pilot project was initially launched in 2008 to establish the long-term sister city relationship with Tacoma and Fuzhou, China. The project set a benchmark of at least $800,000 in exports, imports and inbound investments. The project also calls for outreach of a minimum of 150 qualified American and Chinese trade service requests. The port and city of each contributed $100,000 to launch the project.

Tong Zhu, director of commercial strategy for the port, told port commissioners this month that the project did not quite reach its trade goals, mostly due to weaker than expected export sales and inbound investments. The largest portion of revenue has been from the project’s imported goods.

Last month, the trade project's contract with the port and city ended. The city has committed additional funds to cover expenses through December. The steering committee, made up of representatives from the city, port and the World Trade Center-Tacoma (WTCTA), already began looking at alternative sources for future funding for the project.

"The committee has realized that the city and port are not in the position to fund the project at the same level," Zhu said.

One option the steering committee is considering would be to transfer the trade project to the WTCTA effective January 2010. The project would operate at a reduced funding level, projected to be around $50,000-60,000. This contribution would fund the project’s key manager position. The port has projected about $20,000 from its 2010 budget toward the project next year. However, Zhu said approximate funding levels and contributions for 2010 have not been finalized yet.

Martha Anderson, assistant director for the city's Community and Economic Development Department, has supported the trade project since its inception.

"The project was slow to start, but the team has done an excellent job bringing trade opportunities to businesses that weren't aware of the trade potential in China," Anderson said. "I think we can still see some growth into next year, even with significantly less funding."

Since the project began, almost all of the American companies involved have been first time international exporters. Currently, Tacoma companies have been exporting goods such as coffee, paint and wine.

The popularity in Washington wine can been seen from examples like locally owned Stina Cellars, which managed to sell about $60,000 worth of wine to the Chinese city.

"The wine trade may seem like a little thing, but now it's in all the five-star hotels in Fuzhou," Commissioner Connie Bacon said.

"The project is working. It's not huge, but to have a Pierce County wine in five-star hotels in this city is kind of a neat thing."