News Releases for March 2008
March 27, 2008
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Trade Mission Generates Business For Eastern North Dakota
FARGO; GRAND FORKS, N.D. – Lt. Gov. Jack Dalrymple and a North Dakota trade delegation to the Republic of Korea reported Tuesday their week-long trip is generating new business and economic development opportunities. The trade mission was led by Lt. Gov. Jack Dalrymple and organized by the North Dakota Trade Office.
“The Census Bureau recently reported that North Dakota tops all other states in export growth with a 34 percent increase last year – nearly three times the national average,” Lt. Gov. Jack Dalrymple said. “Our trade mission to the Republic of Korea and others like it are an important part of our success.”
A 25-member delegation has returned to North Dakota and is following up on business opportunities generated during the trip to Seoul March 14 -21. The mission participants included North Dakota Agriculture Commissioner Roger Johnson, representatives from nine North Dakota agribusinesses, three universities, Jamestown College and other companies with diverse business interests in South Korea. The mission’s goals include increasing export opportunities, student recruitment and advocacy on behalf of the state’s beef producers and intermodal shippers.
Members of the trade mission said they have forged new business ties that will give them a marketing advantage in advance of Congress’s anticipated passage of the Korea-U.S. Free Trade Agreement.
North Dakota agribusinesses and other companies that participated in the trade mission reported new business despite current tariffs, but North Dakota will enjoy greater exports once the trade agreement is passed, North Dakota Trade Office Executive Director Susan Geib said.
Early trade mission highlights with particular significance in Eastern North Dakota include:
Education
- Officials from University of North Dakota, North Dakota State University and Jamestown College said they are pursuing significant opportunities to recruit Korean students. As a result of the trip, NDSU’s Office of International Programs is working with Korean universities and Korean education consultants to enroll Korean students in NDSU’s English Language Program.
- Officials from UND, Dickinson State University and Jamestown College are working with South Korean universities to provide Korea’s registered nurses with additional study in North Dakota.
- UND Associate Provost Dr. Victoria Beard, signed a memorandum of understanding between NDSU and South Korea’s Gachon University of Medicine and Science to establish academic exchange opportunities for faculty and students. Beard also held meetings with officials with South Korea Aerospace University and other universities to lay the foundation for additional cooperative agreements in aerospace, engineering, nursing, and entrepreneurship.
Business
- John Lund and Jon Swegarden of Precision Diagnostic Services, Fargo, are in negotiations to partner with South Korea’s largest sleep research center. Precision Diagnostics would provide equipment, training and on-going support to 15 sleep centers throughout South Korea. Precision Diagnostics, with 60 employees, operates the North Dakota Center for Sleep and partners with 42 clinics and hospitals in eight states.
- North Dakota’s producers and marketers of Identity Preserved soybeans met with representatives from 56 importers of food-grade soybeans. South Korean food importers expressed concern regarding the reliability of their supplies and are eager to diversify their supply market. North Dakota’s soybean growers said Korea will become a major market for them if the Korea-U.S. Free Trade Agreement is ratified, eliminating high tariffs on U.S. commodities. The local producers reported that South Korean food importers are pleased with the quality of North Dakota supplies, they are willing to pay a premium for food-grade soybeans and want to further develop business ties prior to the trade agreement’s passage. South Korea’s government procurement agency, Agro Fishery Trade Corporation, also encouraged the North Dakota suppliers to bid on recently announced tenders for 100,000 metric tons of soybeans (3.7 million bushels). Soybean producers were represented by: SB&B Foods, Casselton - Robert and Todd Sinner; Brushvale Seed Inc., Wahpeton-Breckenridge - represented by Paul Holmen; and Unity Seed, Casselton - Dave Morken.
- Hyundai Rotim, South Korea’s manufacturer of passenger railcars, has placed an order for Roll-a-Ramp to build a custom ramp for handicap access to its railcars. Hyundai Rotim is expected to order 400 units once a prototype is approved, Roll-a-Ramp Sales Director Greg Moll said. In addition, Roll-a-Ramp plans to sign a distribution agreement with Tong-Il, a medical equipment distributor with 500 dealers throughout South Korea.
- Grand Forks, N.D.- based Dakota Peat & Equipment took advantage of opportunities presented by the trade mission to introduce potential customers to its products and services. Dakota Peat officials established relationships with Korean agricultural, golf course and turf management suppliers About 20 million people frequent South Korea’s golf courses every year. According to the Korea Golf Course Business Association (KGBA), 100 golf courses are under construction in South Korea or are in their planning stages. Dakota Peat & Equipment of Grand Forks was represented by Jeff Fellman and James Burgum.
Economic Development
- In a meeting with Dalrymple and other mission members, leading executives from South Korea-based Doosan, the parent company of Bobcat, are awaiting a proposal to locate major suppliers to Bobcat in Bismarck. The Doosan executives also are interested in placing South Korean students in North Dakota universities to earn engineering degrees.
- Executives from Hanjin Shipping pledged to pursue a North Dakota strategy that calls for shipping companies to provide more containers for North Dakota’s intermodal shippers.
- Dalrymple and Johnson reported that the ban of U.S. beef remains a significant issue, but he is optimistic about North Dakota exports of agricultural goods to South Korea. Johnson said he hopes the ban is lifted by summer – a necessary step before Congress approves the Korea-U.S. Free Trade Agreement.
“I don’t see any downside in the free trade agreement for U.S. agriculture,” Johnson said.
Newly elected South Korean President Lee Myung-bak, a former CEO of Hyundai and a free trade advocate, has pledged to ensure the beef trade is flowing once again. He will meet in Washington with President Bush next month after the Korean parliamentary elections, which are scheduled for April 9. The outcome is expected to favor the new president, and will have implications for the future of the Korean beef ban, according to Dalrymple and Johnson.
The trade agreement would provide greater access to South Korea’s $1 trillion economy and 49 million consumers. Almost two-thirds of U.S. farm exports would become duty free immediately. The trade deal would eliminate tariffs on nearly 95 percent of all U.S. exports of consumer and industrial products within three years of the agreement’s enactment.
South Korea is the United States’ 7th largest trading partner and the 5th largest market for U.S. agricultural products. Last year, North Dakota exported goods to Korea valued at $12 million, more than five times the export value in 2001.
Participants in the trade mission were:
- Dakota Pride Cooperative, Jamestown
- ND Mill and Elevator, Grand Forks
- Gussiaas Farm, Inc., Carrington
- Brushvale Seed Inc., Wahpeton
- Sun Opta, Fargo-Moorhead
- SB&B Foods Inc., Casselton
- Dakota Growers Pasta, Carrington
- Unity Seed, Casselton
- Cloverdale Foods, Mandan
- Precision Diagnostics, Fargo
- Dakota Peat & Equipment, Grand Forks
- J&J Corporation, Inc., Fargo
- University of North Dakota
- Jamestown College
- Dickinson State University
- Roll-A-Ramp, West Fargo
- Ideal Aerosmith, Inc., East Grand Forks
- Advenio Partners LLC, Fargo
- Bismarck-Mandan Development Association
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