Arkansas opens European booster office

Mike Preston, executive director of the Arkansas Economic Development Commission; Gov. Asa Hutchinson; and U.S. Ambassador to Germany John B. Emerson open an Arkansas economic development office in Berlin on Wednesday.
Mike Preston, executive director of the Arkansas Economic Development Commission; Gov. Asa Hutchinson; and U.S. Ambassador to Germany John B. Emerson open an Arkansas economic development office in Berlin on Wednesday.

Arkansas opened a new economic development office Wednesday in Germany as fallout continued from the United Kingdom's vote to exit the European Union.

Gov. Asa Hutchinson and Mike Preston, executive director of the Arkansas Economic Development Commission, were in Berlin to launch the office, attend the Farnborough International Airshow outside of London and talk to business prospects.

Hutchinson said Britain's vote to leave the union weakens the Continent's position in trade negotiations with the United States.

"It is my view that this will not put any damper on increased trade opportunities with Europe. It is my judgment that we will be able to be in a better position to negotiate trade deals," the governor said.

"When you're looking at barriers in place on Arkansas poultry, meat products, as well as rice and other commodities, I think their tough negotiating position has been reduced and hampered as a result of the Brexit vote."

Exports from Arkansas have declined from a peak of $7.6 billion in 2012 to $5.9 billion in 2015.

In terms of exports, Germany is now Arkansas' No. 12 trading partner, according to the U.S. Department of Commerce.

Hutchinson described Germany as "our lead European trading partner," but Arkansas exports more to three other European Union countries -- France, the United Kingdom and the Netherlands -- on the basis of data from the U.S. Department of Commerce.

Information from the Commerce Department does not include commodities from farms, like rice and chicken, which are tracked by the U.S. Department of Agriculture. Arkansas exported $3.7 billion worth of commodities in 2014, according to the department, which does not detail destination countries.

State exports to Germany declined from a high of $202 million in 2013 to $103 million in 2015, according to the data. Imports from the country totaled $420 million, according to a news release from the Arkansas Economic Development Commission. That's a 53 percent increase since 2014, according to the commission.

Scott Hardin, spokesman for the commission, said 23 German companies collectively employ 1,600 people in Arkansas. There are 13 French companies in the state that employ 3,700, he said.

"The governor noted Germany is the largest foreign direct investor in Arkansas, with more than 20 investments in the state," Hardin said.

Hutchinson said he has met with more than 20 companies while in Europe and has more than a dozen significant leads. He said he had no job announcements Wednesday but expected future results from the trip.

Both the governor and Preston praised Cornelius Schnitzler, who will be paid $230,000 through a contract to run Arkansas' European office from Germany. That amount includes his salary, and money for travel and to run the office.

Schnitzler, 36, attended the Georg-August-Universitat Gottingen and the University of California Los Angeles from 2000 through 2007, earning a bachelor's degree in economicd and a master's degree in international economics, according to his resume.

From 2008 through 2013, he attended the Georg-August-Universitat Gottingen and earned a PhD is economics.

Since 2014, he worked at the European Centre of Expertise for the Healthcare Industry EEIG, according to his resume. He worked on business feasibility studies and financial models for investments in the Gulf Cooperation Council.

"With his business background, his connections here, he obviously is the right fit and very talented," Hutchinson said. "The success of this trip in terms of the contacts made, the businesses that have been brought to the table, Mr. Schnitzler has done an outstanding job in making this come off a very successful way and expanding Arkansas' exposure to these important companies."

Hardin said Schnitzler was chosen for his professional contacts in Germany.

"We realized he had developed, both through business and personal outreach, numerous business, trade, consulting and academic relationships in Europe," Hardin said in an email. "He also has intangibles such as good business and cultural acumen in Germany, France and America, having lived in the U.S. for educational purposes."

Schnitzler is a native German speaker, has excellent English skills and speaks French, according to his resume.

"We look forward to having him in Arkansas at some point to introduce him to companies there so they know they have a contact in Europe should they look to increase their exports," Preston, the Economic Development Commission director. said.

The commission previously had a European office in Brussels, but it was closed during Gov. Mike Huckabee's tenure.

Hardin wouldn't speculate about why the office was closed. He has said the agency had more of a focus on Asia at the time.

"This is about making sure that our good companies in Arkansas that are employing Arkansans are not taken by another state," Hutchinson said. "It's about really opening doors for Arkansas companies in European markets, as well as making sure European companies are exposed to the Arkansas market."

Business on 07/14/2016

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