PORTLAND, Ore. (KOIN) – Ahead of U.S. tariffs against Mexico and Canada, a pair of bills are making their way through the Oregon legislature in an effort to boost trade and international relations in the state.

The bills come as President Trump announced plans to impose tariffs against Mexico and Canada starting Tuesday along with plans to double a universal 10% tariff on imports from China, as reported by The Associated Press, noting Trump called for the tariffs because of illicit drug smuggling into the U.S.

Ahead of those tariffs, some Oregon lawmakers are looking to strengthen the state’s overseas partnerships with Mexico, Canada and China — which are Oregon’s top trading partners.

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On Wednesday, members of the House Committee on Economic Development, Small Business, and Trade held a hearing on two trade-related bills.

The legislation comes as Oregon exports rose by 20% in 2024 and reached an all-time high of $34 billion, according to the committee, adding that local businesses are now facing uncertainty ahead of tariffs.

The Oregon TRADE bill

The first bill under discussion was House Bill 3100, the Oregon Trade Resilience and Developing Exports (TRADE) bill.

The Oregon TRADE bill would direct Business Oregon, Travel Oregon, the Port of Portland and the Oregon Department of Agriculture to develop a unified trade strategy.

Under the bill, this strategy must include hiring consultants to represent Oregon in foreign markets, support outbound and inbound trade for government and businesses, promote Oregon exports abroad and foreign direct investment in the state and must provide technical assistance to Oregon businesses impacted by foreign tariffs.

The bill requests $3,200,000 in lottery funds to implement provisions in the bipartisan bill, whose chief sponsors include Committee Chair Daniel Nguyen (D-Lake Oswego & SW Portland) and Vice-Chair Rep. Ed Diehl (R-Stayton).

“The Oregon TRADE bill is a proactive solution that in the best of times will promote Oregon products and tourism abroad, and in the worst of times serve as a last line of defense for Oregon businesses caught in the crossfire of a trade war,” said Rep. Nguyen, Chair of the House Committee on Economic Development, Small Business, and Trade. “With Trump’s tariffs jeopardizing billions of dollars in Oregon exports and straining valued relationships, it’s especially critical to have a cohesive, all hands-on deck trade strategy–Oregon consumers, workers, and business owners depend on it.”

During Wednesday’s hearing, Nguyen explained, “Oregon’s economy is reliant on global trade. Oregon’s electronics, metals, timber, wheat, wine and more are world-renowned.”

“Despite a surge in exports by more than 20% last year, equating to more than $34 billion, Oregon businesses across industries cannot expand or brace for the worst due to the uncertainty posed by the looming tariff proposals,” Nguyen testified.

“From Canadian crude oil used to pave Oregon’s roads to the Mexican glass bottles used to package Oregon spirits, businesses rely on foreign goods and material for a wide variety of products. Despite our dependence on global trade, Oregon lacks a comprehensive trade strategy,” Nguyen said.

Daniel Chen, the director general of the Taipei Economic and Culture Office in Seattle was among experts who provided testimony for the bill, providing an overview of Oregon’s reach to Taiwan and Asia Pacific countries.

“Taiwan right now is Oregon’s sixth largest trading partner with a total trade volume of $2.1 billion,” Chen said.

Chen pointed to trade in the agricultural and technology industries between the two countries.

“According to the U.S. Census Bureau, in the year 2023, Taiwan became the fastest-growing trading partner with Oregon globally in semiconductor devices and related products. So, bilateral trade in this category, grew by almost 17 times…compared to 2022,” Chen said.

Carlos Quesnel, consul general of Mexico, was among other speakers who testified in favor of the bill, citing strong trade relations between Oregon and Mexico.

“Trade is not just about numbers, it is about people, jobs, shared prosperity and the riches we build between in our communities. Mexico has long been a strategic partner of Oregon and today, that partnership has reached historic levels,” Quesnel said.

In 2020, Mexico was ranked as Oregon’s ninth-largest trade partner, before becoming Oregon’s second-largest trade partner today — with top exports including automotive parts, semiconductors, industrial machinery, agriculture and livestock, Quesnel noted.

“Trade between our regions has grown from $1.3 billion in 2020 to $7.1 billion in 2024,” Quesnel said. “Today’s proposal, which aims to create a unified trade strategy for Oregon, offers a valuable opportunity to enhance and expand the already successful trade relationship between Oregon and the world.”

As the hearing turned to questioning from the committee, Vice Chair Diehl noted that he wants this bill to benefit Oregon as a whole.

“What I want to make sure of is that this benefits the entire state. And so, we have some industries which are more glamorous and they may actually have more revenue, trade going on but there’s other ones that are in different parts of the state that may employ a lot of people, but they may not have the same financial revenue,” Diehl said. “How do we make sure that this does balance that out and reflects the different industry sectors in the state?”

In response, Rep. Nguyen testified that the Oregon TRADE bill could give businesses more international connections, stating, “We have a lot of businesses that are really focused on running their business, whether it’s farming, whether it’s manufacturing, not every company has government relations or a global trade arm. And this is where I feel like the agencies working with businesses can be that trade arm, provide that access to foreign governments and business connections in other countries that might not be available if you didn’t have a department.”

“This is a way that we’re able to provide those tools that can really make smaller and medium-size businesses more competitive,” Nguyen added.

Nguyen noted the bill provides an opportunity to “uplift everyday people,” adding, “We often get caught up in some of the dialogue back and forth about politics but the vast majority of folks, they don’t care about that. They care about what we’re doing right now, and I think that’s what our responsibility is to really highlight whether it’s the more glamorous manufacturing that happens, it’s in the global headlines, but equally important are really the bread-and-butter industries, the farming, the wheat farmers, that really feed the world. And that’s something I really want to be able to help.”

Fielding a question from Rep. Alek Skarlatos (R-Canyonville) about measuring success of the bill, Nguyen said state lawmakers should work with state agencies for accountability and ensure the bill is helping businesses and bolstering Oregon’s international relationships.

In another round of testimony for the bill, Edward Kimmi — honorary consul for the Republic of Korea and Council President for the City of Beaverton — pointed to “untapped” trade opportunities in the agricultural, semiconductor, renewable energy and tourism sectors between South Korea and Oregon.

“Oregon is a leading producer of hazelnuts, wheat, wine and seafood, all of which are in high demand in South Korea. Expanding trade agreements and market access would further support Oregon’s farmers and food producers.,” Kimmi said. “Additionally, Oregon’s semiconductor and technology sectors have strong synergies with South Korea’s advanced tech industry, home to major firms like Samsung and SK Hynix.”

Kimmi added, “Oregon’s economy is at a crossroads. The effect of Trump trade policies, including tariffs, and shifting global supply chain have impacted key industries such as agriculture, technology, manufacturing and tourism. These disruptions have made it more important than ever for state, county, and city governments to work together with private partners to create a unified trade strategy that strengthens Oregon’s position in the global market.”

Kimberly Branam, Chief Trade and Economic Development Officer for Port of Portland, echoed support for the bill, stating, “Oregon’s economic health is so reliant on trade and this funding and strategic plan is greatly needed. Oregon benefits from international trade through exports, foreign direct investment and tourism.”

GO TO bill

The second bill discussed during the hearing was House Bill 2756, the Global Oregon Trade Offices (GO TO) bill, which would create the Oregon-Taiwan Trade Center and the Oregon-Vietnam Trade Center.

The bill appropriates $500,000 to the Oregon Business Development Department to establish the trade centers.

Under the bill, OBDD would also be allowed to add more offices in Taiwan or Vietnam to foster economic development and increase trade.

An amendment to the bill would further allow the department to create five additional offices in other countries deemed critical trade partners for Oregon.

“We know that direct, personal, and sustained engagement will be an essential component of whatever strategic trade plans we build,” said Rep. Paul Evans (D-Monmouth, Independence, West Salem and South Salem). “Trump’s Tariffs have exponentially increased our need to get trade centers up and running now in places like Taiwan and Vietnam, where we can make the biggest impact. Over time, we can expand partner locations as their markets evolve.”

Evans added, “Right now, more than any time in my lifetime. Democracy across the world is under, if not attack, then certainly it’s under a microscope. Is democracy the best way to move forward? I mention democracy because I happen to believe in the old-fashioned democratic version that market democracies, where your rights and liberties are protected and chief among those is the ability for commerce, to trade among nations for people to develop their ideas and products and be able to sell. That is the best way to promote peace.”

Evans said he believes that if Oregon does not invest in trade with Taiwan, Oregon would be losing its chance to have a “leg up” in competition with other states that have preexisting relationships with the country.