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Pawlenty embarks on first trade mission; critics question expense
by Laura McCallum, Minnesota Public Radio
September 26, 2003

Gov. Pawlenty says he also decided to focus more specifically on the state's biosciences and medical industries, rather than simply promoting Minnesota as a place to do business. (MPR Photo/Laura McCallum)

Gov. Pawlenty says he wants to promote Minnesota's biosciences and medical industries, during his two-day mission to Montreal. Pawlenty says he doesn't plan to announce any trade deals, but says the trip's cost to the state of about $20,000 will pay off in increased trade with the state's largest trading partner. Others aren't so sure.

St. Paul, Minn. — Pawlenty travels to Canada about two years after his predecessor, Gov. Jesse Ventura, spent three days promoting Minnesota in Manitoba and Ontario. Pawlenty says he chose Montreal because it's largely new territory.

"While we do have some prominent Minnesota companies who have a presence in this area ... it has been somewhat neglected in our commercial and trade focus and relations and so we're going into it kind of from ground zero," according to Pawlenty.

	Elaine Bliss

Pawlenty says he also decided to focus more specifically on the state's biosciences and medical industries, rather than simply promoting Minnesota as a place to do business. He says while he probably won't announce any trade deals while in Montreal, he hopes networking between the Minnesota delegation and Canadian business leaders and investors will lead to expanded trade. State trade officials say trade missions shouldn't be judged by whether deals are announced on the trip.

Elaine Bliss, executive director of the Minnesota trade office, says trade oppportunities don't happen overnight. "We try to get the message across that these are long-term relationship building, and the ability to use the governor and the governor's office and that to leverage, to open doors to get access for small and medium-sized businesses."

The cost of Jesse Ventura's trips
Japan	$137,000
Mexico	$86,000
Germany	$32,000
China	$148,00
Canada	$40-$45,000

Gov. Ventura signed several cooperative agreements with Canadian officials during his trade mission in 2001. He also conducted highly-publicized trade missions to Cuba, China, Japan, Mexico and Germany. During the China trip, a Minneapolis firm finalized a Chinese contract worth $230,000, and as a result of the Cuba trip, Minnesota farmer Ralph Kaehler signed a contract to ship cattle to Cuba.

Kaehler also went on the China trade mission, and says he believes both trips will pay off for his family farm business.

"You know, to put a dollar figure on it, did we make any sales overseas because of China? Not yet. If you ask me in two years, I'm pretty confident that we will have made some," he says.

Kaehler estimates he spent as much as $14,000 to go on both trade missions, including the cost of taking his wife and two sons to Cuba. He says it was money well spent, both as a business expense and a chance to experience other cultures. He says he doesn't know anyone who's ever gone on a trade mission who thought it was a waste of money.

	Howard Orenstein

But when Ventura went to Japan, the Taxpayers League of Minnesota asked him to reimburse the state for the $100,000 cost of the trip. The group called it a "taxpayer-funded vacation for the governor and his staff." Legislative director David Strom says he doesn't think trade missions are a great way to spend taxpayer dollars, because trade doesn't depend on the government.

"Having talked to a lot of entrepreneurs, some of whom are going, some of whom have decided not to go, there seems to be a pretty strong consensus that it really just doesn't make that much difference whether or not you're in the presence of the governor or not," according to Strom.

Strom says some business leaders would rather pursue international trade on their own at a cheaper price. The 17 business leaders who will accompany Gov. Pawlenty to Canada will each pay a $750 fee plus expenses.

Howard Orenstein, an advisor to St. Paul Mayor Randy Kelly, says he and the mayor are going to Montreal to promote the city's new biotech incubator.

"From a very short-term perspective, we've got a building that we want to fill up with high-quality tenants, and to the extent that Canadian companies want to come, we'd love to have them. The longer term effort for Mayor Kelly goes beyond this one building; we want to have building after building in the 280 University Avenue area devoted to biosciences."

Orenstein says the mayor's office has been wooing a Montreal company, although he wouldn't say which one.

Gov. Pawlenty says by the time he leaves Montreal, he thinks his trade mission will have received significant press coverage in trade publications and business journals. Pawlenty says he's not an international celebrity like Jesse Ventura, but he thinks his message will reach potential investors.

"I'm not the kind of governor who's going to be recognized in downtown Montreal, but I do think I know enough about this where I can be an effective advocate and spokesperson to the audiences that really matter," says Pawlenty.

Pawlenty says Minnesota isn't on the radar screen in Montreal, but he hopes to change that -- at least in some circles -- in the next few days.

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