Ohio's International Trade Division
The International Trade Division (ITD) of the Ohio Department of Development was created to promote Ohio products overseas and encourage foreign investment in the state. Along with its Columbus operations, the ITD has offices in Brussels, Belgium; Tokyo, Japan; Hong Kong, People's Republic of China; Toronto, Canada; Tel Aviv, Israel; Mexico City, Mexico; Sao Paulo, Brazil; Santiago, Chile; Buenos Aires, Argentina; and Johannesburg, South Africa.[1]
In recent years, the fewer overseas marketing opportunities resulting from a slowing economy and strong U.S. dollar could have translated into a reduction in expenditures. Spending for this program, however, has increased to approximately $5.5 million dollars annually. The budget increased by 3.2 percent in 2002 and 3 percent in 2003. Since 1997, the program’s budget has averaged roughly $5.3 million, meaning that from 1997 to 2003 Ohio has spent roughly $37 million.[2]
This program forces the taxpayers of the state to subsidize the foreign marketing efforts of Ohio companies. But shouldn't companies have to pay for their own marketing overseas just as they do domestically? In these tight budgetary times, with budget cuts in the works and frequent discussion of tax increases, Ohio's taxpayers shouldn't have to pay for with this kind of corporate welfare. Welfare reform has successfully moved thousands of Ohioans off the welfare rolls and into the workforce. Shouldn’t Ohio do the same with its companies?
Notes
[1] For more information, see the International Trade Division website at: http://www.odod.state.oh.us/itd/. Ohio’s ITD offices in Sao Paulo, Santiago and Buenos Aires are joint offices through partnership with the Council of Great Lakes Governors.
[2] “Fiscal Year 2002-2003 Final Appropriation Amounts,” Legislative Service Commission. Available at: http://www.lsc.state.oh.us/. Buckeye Institute calculations.
Robert Lawson is a senior fellow with The Buckeye Institute. Matthew Hisrich is a policy analyst with The Buckeye Institute.
