Port of San Diego Seeks New Business Following Approval of Trade Agreements

Friday, 28 October 2011
Contact: John Gilmore (619) 686-6222, (619) 686-7206

President Barack Obama's recent signing of trade agreements with South Korea, Colombia and Panama is expected to generate new trading opportunities for the Port of San Diego.

The Port District already is a trading partner with South Korea for automobiles, wind energy components, transformers and steel products. The new trade pact may expand the Port District's business with South Korea, and the agency is hopeful that the agreement with South Korea will spur U.S. car exports.

Kia and Hyundai vehicles, which are manufactured in South Korea, are among the automobiles and trucks that are imported through the Port District's National City Marine Terminal. That business is conducted by auto importer Pasha Automotive Services.

"The Port District's trade office is working with Pasha Automotive and U.S. auto makers to export autos from San Diego to South Korea," said Ron Popham, who leads the Port District's Trade Development Office.

Pasha Automotive operates from the National City Marine Terminal, where it brings in autos, including Lamborghinis, Bentleys, Lotus, Porsche, Volkswagen, Audi, Honda, Acura, Mitsubishi, Izuzu, Mazda and Kia.

The new trade agreements underscore President Obama's National Export Initiative that seeks to double American exports over the next five years.

"The agreements also phase in cuts of U.S. levies on Korean cars and SUVs," Popham said. He added that the agreement, which allows up to 100,000 U.S. car exports annually into Korea, could lead to more Korean cars being imported into the Port of San Diego.

The Port District is also eyeing export opportunities with Colombia and Panama for U.S. agricultural products and machinery.

"The agreement with Colombia eliminates duties that average nearly 17 percent on most agricultural products and eliminates duties on heavy equipment and machinery, ranging from 7 percent to 15 percent," Popham said. "The trade office will target these commodities accordingly."

In Panama, duties will eventually be eliminated on 88 percent of U.S. exports, Popham said.

"The Port of San Diego's Maritime Trade Development Office will target agricultural products from the Imperial Valley for export," he said.

The three agreements are expected to result in an annual increase of more than $14 billion to the U.S. gross domestic product, or about 0.1 percent of the annual GDP.

The Port District's Trade Office is planning a trade mission to Japan, Korea, and China in February 2012 to meet with existing and new customers where the focus will be on a mix of cargo, including wind turbine components, heavy equipment and machinery, steel, and automobiles.

Other trade missions are planned in May, 2012 to Europe and July 2012 to South America. The focus also will be on energy components, automobiles and steel.

The Port of San Diego ranks 99th out of the 360 U.S. ports for volume of cargo.

The Port of San Diego was created by the state Legislature in 1962. Since then, it has invested $1.7 billion in public improvements in its five member cities: Imperial Beach, San Diego, Coronado, Chula Vista and National City.

The Port oversees two maritime cargo terminals, two cruise ship terminals, 17 public parks, the Harbor Police Department and the leases of more than 600 tenant and sub tenant businesses around San Diego Bay.