WTC TO HOLD EXPORT-IMPORT WORKSHOPS IN SIX CITIES

Many companies are finding after Katrina and Rita that they want to rebuild or expand the market base for their goods and services by looking abroad to increase sales, while other firms are interested in sourcing internationally for such products as construction materials. The main topics to be discussed at the workshops are: export marketing and sourcing of imports; logistics and documentation; legal considerations; methods of payment and trade finance; and available resources in Louisiana to assist companies.

The ABCs workshops will be held in Lafayette (November 15), New Orleans (November 16), Mandeville (November 30), Baton Rouge (December 1), Shreveport (December 6), and Alexandria (December 7).

The speakers include: Eugene Schreiber of the World Trade Center; Ruperto Chavarri, International Trade Center/SBDC; Larry Collins of Louisiana Economic Development; and Rick Shulze with the Small Business Administration. Other speakers will be a commercial banker, a freight forwarder/customs broker, and representatives of several other agencies and organizations. At the conclusion of the program at 4:00 p.m. the speakers will be available for individual consultations with the participants.

For workshop details and to register, call the WTC at (504) 529-1601, ext. 222 or click here.

WTCA TO BRING 2007 GENERAL ASSEMBLY TO NEW ORLEANS

The WTCA, with 278 members in 78 countries, was founded in 1970 to promote trade through the establishment of World Trade Centers around the globe and to promote mutual assistance among its members.

Some of the world's most prominent trading organizations, such as the Korea International Trade Association in Seoul, TAITRA in Taipei, the China Council for the Promotion of International Trade (CCPIT) in Beijing, and the Russian Chamber of Commerce, are WTCA members and operate World Trade Centers of their own. Each WTCA member has a constituency of businesses and clients, with the total number of these affiliated businesses worldwide exceeding 750,000.

The General Assembly of the WTCA is the most important event on the Association's annual calendar. It is the one time each year when the entire membership is invited to come together with business delegates for four days of meetings, business appointments and tours. The WTCA recently completed its very successful 2005 General Assembly in Shanghai, China, that attracted over 650 World Trade Center delegates, including trade mission delegates. The WTCA will hold its 2006 General Assembly in Istanbul, Turkey in November 2006. The 2007 event in New Orleans will likely be held in November as well.

World Trade Center New Orleans, comprised of 2,000 corporate and individual members, is a founding member of the WTCA. Its predecessor organizations, International House and the International Trade Mart, date back to the early 1940s. As the host organization, World Trade Center New Orleans together with World Trade Centers Association will be handling the many programs and other arrangements related to the General Assembly.

For more information on the 2007 WTCA General Assembly and World Trade Center New Orleans, please contact Eugene Schreiber at (504) 529-1601 ext. 227, email eschreiber@wtcno.org.

RECOVERY AND REBUILDING CONFERENCE IN NEW ORLEANS

MAYOR NAGIN OUTLINES NEW ORLEANS RECOVERY PROGRAM

Mr. Chairman, members of the Committee, I would like to thank you all for inviting me to speak to you today about the City of New Orleans. To all the members of Congress, and in particular to our Louisiana delegation, thank you for all of your continued hard work and dedication in helping us in this time of need. I would also like to take a moment to thank the American people, most of all, for the compassion, support and generosity they have shown our city over the last couple of months. The outpouring from private citizens and corporations all over this country has been remarkable.

New Orleans is surrounded by the great waters of the United States. But while the waters surrounding New Orleans provide our lifeblood, they also threaten our very existence. A system of levees and pumps protects this city nestled in the crescent of the Mississippi River and extending north to the banks of Lake Pontchartrain. Although these systems ordinarily meet the water challenges facing the city, Hurricanes Katrina and Rita were extraordinary events that have changed life in New Orleans forever.

As you know, on August 29, 2005, Katrina, the most powerful Category 4 hurricane to hit the region, devastated New Orleans and the Gulf region causing unimaginable damage and breaching the levees that protect our city. This storm forced hundreds of thousands of people to flee, flooded thousands of homes and decimated many lives. The damage to homes, schools, businesses, hospitals, roads, water plants, communication facilities, and electrical power infrastructure was unprecedented, and the economic and social fabric of the area was damaged in its entirety.

Our storm protection systems did not work against Katrina, a Category 4 hurricane that made land fall near Buras, Louisiana. The City's levees were overtopped and/or destroyed, which created a flood that would overtake much of New Orleans.

All business was immediately halted. Hospitals were forced to close; electricity, communications and fresh water services were disabled. Hundreds of thousands had to be evacuated to different cities throughout the United States. Many who wanted to come home could not because their homes were destroyed; jobs were lost with no access to a workable health care system. Homes that did survive were inundated with contaminated and oil-laced water. Some of these homes and businesses are ruined forever. Some of our hospitals may have to be torn down.

Now we have a great challenge before us. We need to rebuild this great City to bring New Orleans back and in order to do that, we need this committee's help in a combination of structural and non-structural flood control measures.

Our first challenge is to ensure the safety and security of our citizens. The Chief of the Army Corps of Engineers has assured me that flood defenses for New Orleans will be restored by June of 2006 to the level where they were when the hurricane struck and overpowered them. The Corps Commander also acknowledged that this would provide little comfort in a city devastated by the storm and whose flood protection is not as strong as it should be. The Corps currently has no authority to rebuild the city's flood protection from hurricanes stronger than a Category 3 storm. But more is needed. Now is the time for our country to make a commitment to the Category 5 levees that will enable us to bring New Orleans back. I ask this not just for the nearly half-a-million people who call the city home but indeed for the well-being of our nation. Only with a plan to improve our critical levee and flood control systems can we expect citizens to come back and businesses to reinvest on a large scale.

New Orleans is an economic hub for the entire nation and is of great strategic importance. Four of the largest ports in the nation are in this area; half of the grain exported from the U.S. goes through New Orleans. The area contains a vast infrastructure of oil and gas exploration and production, petrochemicals, refineries and pipelines that serve much of the country, and its fishery resources are among the largest in the U.S. Simply put, the nation cannot afford not to rebuild New Orleans and federal money must help the city to rebuild the right way this time.

But levees and floodwalls alone will not solve this problem. Drainage is an essential part of the flood control equation. The Southeast Louisiana Flood Control Project (SELA), our primary drainage enhancement program, must be expedited and completed as soon as possible so that the benefits can be realized as we rebuild the city.

Our water and sanitation system infrastructure was also badly damaged by Katrina. They need to be renovated or replaced in order to continue providing our citizens with safe drinking water and a healthy environment.

Another crucial component to our infrastructure needs lies outside Orleans Parish. A comprehensive plan to protect our city and the nation's investment in our region includes rebuilding the marshlands of southeast Louisiana. Wetlands act as a natural buffer between this part of the United States and the Gulf of Mexico, reducing potential flooding and protecting southeast Louisiana from devastating storm surges. Two miles of rebuilt marshland will reduce surge up to two feet. With local, state and federal coordination on this issue we can protect the nation's' investment in New Orleans and the Louisiana coastal area.

Along with the rebuilding of our Levee System to help protect the City from another dangerous storm, we are also focused on the reestablishment of our businesses. We need to ensure that local workers and businesses have an opportunity to be a part of the rebuilding process. An initial investment can pay off multiple times for our nation if we invest in the people who will continue to reinvest in the local economy.

To bring New Orleans back, we must also revitalize our business climate with tax breaks to help stimulate reinvestment and economic development.
Continued from page 2

Therefore, I am asking for the establishment of the New Orleans/Katrina Tax Recovery and Jobs Incentive Zone that would give people a 50 percent credit on their taxable wages. This zone would cover the entire city, along with other affected areas, and would consist of several main components:

• The credit would be capped at $50,000 for single taxpayers and $100,000 for joint returns.
   
• Employers would also receive a 50 percent income tax credit based on their total payroll for all employees who live and work in the zone. Credits would not carry back or carry forward for sales to third parties.
   
• There would also be an income tax free zone within these areas for any manufacturing companies creating jobs and adding value to any of the top five raw materials (coffee beans, steel, raw metals, rubber and plywood) imported through the Port of New Orleans with a focus on advanced robotic utilization. The same tax free zone would also be created for medical research, clinical trials, pharmaceutical manufacturing, and related patent development.
   
• To ensure that we bring back businesses and individuals who were forced to relocate, we need a full Relocation Tax Credit that should be allowed for uncompensated expenses incurred in relocating individuals or businesses to their location prior to the storm. Relocation expenses should include those related to leases of temporary facilities, along with everyday expenses such as lodging incurred on behalf of employees. The credit should apply for both the regular and minimum tax and be eligible to carry back for three years and forward 20 years. These incentives would last for seven years, or until the population in the target areas reaches pre-Katrina levels, whichever comes first.

To ensure that this nation's investment in the region has maximum lasting impact, aid must be delivered to the areas that need it most. I urge you to establish a minimum funding formula that is based upon the number of people displaced or affected and the number of buildings or residences either flooded or damaged.

Our City government knows the uphill battle local businesses, institutions and workers face, because we too face difficult decisions as we continue operating. The City laid off approximately 50 percent of our workforce, about 3,000 people, because of a total loss of revenue streams. The Stafford Act must be amended so governments facing crises of this magnitude have more flexibility to pay workers.

While the Community Disaster Loan Act of 2005 will allow the city to begin to address our financial needs, I remain concerned that restrictions imposed by Congress will make it difficult for us to fully respond to the challenges ahead. We need the restrictions lifted that limit loan amounts to 25 percent of our revenue and that take away the authority of the President to forgive the loans if a local government cannot repay. The Stafford Act must be fixed.

Transportation repairs and restoration are yet another crucial aspect to recovery. Our transit system suffered heavy losses of busses, rail and associated infrastructure that will require federal assistance to repair and replace. Without restoration of these transportation systems, our recovery efforts will be severely impacted. A light rail system linking Louis Armstrong International Airport, New Orleans and Baton Rouge would provide another needed tool for the rapid evacuation of thousands of people in the event of another major storm, and for rebuilding the regional economy.

Our community is already moving to bring New Orleans back. The foundation of this effort is a 17-member commission I appointed to draft a master plan for rebuilding the city. The representatives on the Bring New Orleans Back Commission will work with hundreds of committee members, both residents in the city and people displaced by the storm, to draft a detailed recovery plan. I have charged this commission with a weighty task, but I am confident that members are up to the challenge. Each was chosen to enrich the scope of voices necessary to rebuild our diverse city. Co-chairs Mel Lagarde, a successful investor and entrepreneur, and Barbara Major, a community activist and advocate for the poor, are representative of the types of input we need to be successful.

By the end of the year, the commission will develop a blueprint for New Orleans' recovery. However, we are facing a critical point when businesses and residents are making life-altering decisions about whether to stay in the area. Recently, we sponsored a Back to Business Workshop in conjunction with the Department of Homeland Security to help local companies become more involved in the building process, but our city needs an immediate infusion of resources and tax incentives to encourage growth. I am encouraged by President Bush's promise of federal assistance for locally directed projects because I truly believe the best people to rebuild New Orleans and Louisiana are the people who call the area home. This mayoral administration's track record shows our understanding of the responsibility that will accompany significant federal aid and our commitment to spending every penny wisely and in a manner that is in the best interests of all Americans.

In closing, I would like to remind the committee of the critical areas I have addressed today:

• Building flood control measures to protect against a Category 5 hurricane
• Repairing or replacing our water and sanitation system infrastructure
• Rebuilding the marshlands of Southeast Louisiana
• Establishing a minimum-funding formula
• Ensuring that local workers and businesses have an opportunity to participate in the rebuilding of New Orleans
• Revitalizing the business climate with tax breaks
• Fixing the Stafford Act

I want to thank you again for allowing me to be here with you today. New Orleans must be rebuilt and must be made a safe place to live, work and do business. I am confident that by working together we can achieve a common vision: a vibrant New Orleans with a thriving economy, prosperous citizens, and the chance to once again contribute to our great nation.

Thank you.

PRELIMINARY SURVEY RESULTS FROM RECOVERY WORKSHOP

Preliminary Results:

• Days closed: Businesses lost large numbers of work days.
  Of the 715 businesses that responded to the question, "Did your business lose days of work?," 400 or 56% stated their businesses were still closed. The other 315 businesses lost 21 days of work on average.
   
• Concern over customer base - Many respondents were concerned that their customers would not return.
  About 120 businesses out of 450 or 27%, who responded to the question "other concerns/needs," were fearful of losing their existing customers permanently.
   
• Emergency financial assistance: Many businesses need financial assistance to stay in business.
  Of the 450 who responded to the question, "other concerns/needs," 33% or 150 expressed need for money to provide cash flow for reconstruction, wages, and previous loan obligations.
   
• Insurance payout: The number of businesses that had received insurance payout is extremely low.
  Out of 274 businesses that responded to the question, "Have your heard any response from your insurance company about insured goods?," only 1 or less than 1% of business stated that money was received.
   
• Utilities: Many businesses, 35 days after Hurricane Katrina, still did not have basic utilities.
  Of the 730 businesses that answered, "How many days after the storms were the following services not available," only 350 or 48% stated they had access to both electricity and telephone service. Of the 540 businesses that answered, "Is gas available now?," 330 or 61% stated that the service was still out.
   
• Payroll: Many businesses stated that they could not meet payroll:
  About 460 businesses out of 700 or 66%, who responded to the question, "Will you be able to meet payroll?" stated they will not be able to do so. The other 240 businesses or 34% stated they would be able to meet their payroll. For many of the businesses that could meet payroll, concern was stated over how much longer payroll could be met.
   
• Employees not working: A great majority of businesses do not have employees at work.
  Out of the 660 businesses that responded to "What is the current status of the employees?," 85% or 560 stated that an employee or employees have not returned to work.
   
• Need for employees: Due to the loss of employees, new workers will be needed in the near future to fill job positions.  As 85% of businesses stated that they had lost employees, the need for both skilled and unskilled employees will need to be addressed.
  Housing: Businesses were very concerned about the need to house their employees.
  Combining the data from questions addressing "other concerns/needs" and "current employee status," 26% or 215 businesses stated that their employees need housing.
   
• Goods Delivered: Deliveries, including U.S. mail, are still unavailable in areas.
  Of the 430 businesses that answered the question, "With delivery access restricted, how are you receiving goods?," 250 or 58% stated that they cannot receive mail.
   
• Other concerns
   
  • Outside companies- Several businesses questioned FEMA's decision to contract clean-up crews from outside the New Orleans region, when local companies had the man-power and equipment.
     
  • Improve infrastructure: A stronger infrastructure that has levees that can withstand category five hurricanes, along with better plans to combat flooding and violence.
     
  • Availability of grants: If grants are not provided to certain businesses, the owners will have no other choice but to declare bankruptcy.

For additional information, contact Gary Becker, Private Sector Office, Department of Homeland Security, at (202) 282-9013 or gary.becker@dhs.gov.

BEIJING 2008: OLYMPICS HOT SHEET

UPCOMING WORLD AFFAIRS COUNCIL PROGRAMS

January 18-21, 2006 - World Affairs Councils of America National Conference: "The World's Rising Powers: China, India, Brazil, Russia, and Others." Omni Shoreham Hotel, Washington, D.C. Contact wacno@bellsouth.net, or see our November newsletter at www.wacno.org for details.

ONE LOUISIANA EXPORTER'S KATRINA STORY

We live about 8 miles northeast of Covington, which is near the north shore of Lake Pontchartrain in a country setting where many people have horses and live on 5-30 acres. Following the hurricane we were confined to our home for three days due to fallen trees and without power, phones or cell phones. After the first day it was clear that no one was coming to get us. The residents started to bring out their chainsaws, tractors and four-wheel drive trucks to clear the highway. After two days of cutting trees there was one lane open, so we drove into Covington to see if our factory was damaged.

We were lucky and had no major damage at the factory, but it was obvious that a tremendous number of power and telephone poles were down; I estimated 25 percent of the poles were down in our area. On the surface it seemed it would be months before we had power back. There was no broadcast news focused on the Northshore; it was all about New Orleans proper. We could only guess when we would have power again. The only way we could be sure we could operate our factory was to install a very large generator. As soon as the highways were cleared we went to our bank, Hancock Bank, at their Baton Rouge branch to get enough money to make payroll for all the employees in cash. Only two people decided to discontinue employment with us.

On the 3rd day after the storm we went through the factory making notes of the power demands from motors, compressors, A/C, etc. We found that we needed an 80,000-watt generator. It would be 5 ft. wide, 12 ft. long and 9 ft. high and would require a crane to put it in place. Cash in advance payment was required due to the high demand for generators in the wake of the storm. Two days later the generator arrived (Day 5, Saturday) and all through Sunday and Monday (Day 7, Labor Day) Jason of Goldstar Electric, George Peterson, our go-to guy at It Straps On, and I worked on the installation nearly non-stop. We finished at 11 p.m. on Labor Day.

Meanwhile, Katherine, my wife and our company's General Manager, and Dee Mooney, our export sales manager, drove our one-ton truck pulling our 18-ft. car trailer to Gueydan, Louisiana, 30 miles southwest of Lafayette. There, the brother of our Sales Manager, Bob Lemaire, gave us 11 plastic drums and introduced us to Gayle Oil Company. Gayle Oil graciously sold us enough diesel to restart our business. We were able to get 7,000 lbs. of diesel fuel and 150 gallons of gasoline to run the generators at work and at home. With the increased traffic due to the displaced people who had evacuated to the Baton Rouge area and the limited road access, the trip took them 14 hours.

On Monday, George and I unloaded more than a dozen drums of diesel fuel by hand from the car trailer. Some drums were in poor condition and they sprayed diesel fuel all over us while we rolled them to the generator. For hours George and I rolled drums and hand pumped 350 gallons of fuel into the generator tank. As darkness fell we decided George should leave, to return at 7:00 a.m. the next day to start the generator and review work assignments. The electrician and I stayed behind to finish the hook-up.

The generator had to be converted from 120-240 to 480, which involves several hours of re-wiring by an expert in 3-phase motors. The conversion also required the purchase of a transformer that we had picked up (literally it weighed 400 lbs. and had to be carried!) earlier that day. At 11:00 p.m. on Labor Day, 7 days after the hurricane, we were ready to go. I went home, took a cold shower (no hot water) and collapsed into bed, knowing I would sleep late because George Peterson would be at work first thing in the morning to get our factory back into production. George and I smelled like diesel fuel for the next few days, but we had air-conditioning at work and it felt grand!

Just before the storm we had our business phone and fax lines forwarded to our Chicago office. This did not go into effect for 3-4 days, but after that we started getting the calls forwarded. When we first opened, the factory still had no phone service and UPS and the other freight companies were not operating. We decided to use our personal truck on Tuesday and Thursday to move freight to Lafayette, or to Texas if necessary. This plan was short lived, as the freight started to move again on a limited basis by the end of the week - two weeks after the storm. For several weeks, until we got phone service restored, I worked from the law office of James Stovall where our Chicago office could call us and fax purchase orders to us, and where we had access to e-mail to receive orders and other correspondence. We drove twice a day to the factory to process the orders.

We are, as of this writing on October 25, 2005, (over seven weeks since Hurricane Katrina) finally getting back to normal. In hindsight I see that the U. S. mail has been our biggest problem. Checks were delayed, returned to sender, and lost in transit. It was a shock watching the operating cash disappear when no money was coming in. Kelli Donahue with Hancock Bank has been a tremendous help with our cash flow problems, which continues to this day. It Straps On is a small company. Only the understanding and cooperation of our vendors, customers, bank and employees made it possible for us to come through this disaster without losing any customers and without damaging our credit. I would estimate that the storm cost the company about $30,000 in extraordinary expenses.

It is difficult to write this and not tie in what it was like at home. We have a 15,000-watt gas generator that allowed us to run our water well, lights, stove and refrigerator. People without generators brought us their food so it would not spoil and we fed anyone who came over. We provided water to our neighbors and, as they could, they provided us with gasoline. It was very hot during this entire time. We worked outside in the sun and heat and were thankful for our shower at night, but we really missed our air conditioning on those hot nights.

Knowing what we all know now about the flooding, death, separation of families, etc., I am aware that in this terrible ordeal we had it better than most. My wife's show horse died. A friend who was staying with us had her beloved dog die. The stress of the storm was too much for them. We lost no buildings or vehicles, but we did lose trees and so many branches that, when brought to the street for pick-up, they made a pile 400 ft. long, 20 ft. wide and 10 ft. high. We still do not have telephones or Internet service at home. We are rebuilding our fences and continue to remove mounds of tree branches. We were blessed and humbled - all at the same time.

ONE-STOP SHOP FOR REBUILDING POST-KATRINA

POST-HURRICANE EMPLOYMENT OPPORTUNITIES ANNOUNCED

LAFAYETTE AND NEW ORLEANS TRADE FINANCE SEMINARS