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Policy Analysis of 'HB07-1015 Colorado International Trade Office'

Policy Analysis of 'HB07-1015 Colorado International Trade Office'

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Published by Inayet Hadi
As requested, I have analyzed the problems associated with the State of Colorado non-existing authorizing legislation to empower Colorado International Trade Office (C-ITO) to analyze, review, influence and affect U.S. International Trade Agreements in favor of Colorado.

Based on five important criteria – political feasibility, administrative feasibility, cost-effectiveness, effectiveness, and beneficiary

I have concluded that the best policy is the adoption of HB07-1015.
As requested, I have analyzed the problems associated with the State of Colorado non-existing authorizing legislation to empower Colorado International Trade Office (C-ITO) to analyze, review, influence and affect U.S. International Trade Agreements in favor of Colorado.

Based on five important criteria – political feasibility, administrative feasibility, cost-effectiveness, effectiveness, and beneficiary

I have concluded that the best policy is the adoption of HB07-1015.

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Categories:Types, School Work
Published by: Inayet Hadi on Apr 17, 2009
Copyright:Attribution Non-commercial

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05/11/2014

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To:Representative Judd, ChairmanFrom:Inayet Hadi, Policy AnalystDate:October 22
nd
, 2007Subject:Analysis of House Bill 07-1015
Additional Responsibilities for the International Trade OfficeExecutive Summary
As requested, I have analyzed the problems associated with the State of Colorado non-existingauthorizing legislation to empower Colorado International Trade Office (C-ITO) to analyze, review,influence and affect U.S. International Trade Agreements in favor of Colorado. Based on five importantcriteria – political feasibility, administrative feasibility, cost-effectiveness, effectiveness, and beneficiaryI have concluded that the
best policy is the adoption of HB07-1015
.By not reviewing and analyzing international trade agreements for potential impact onColorado’s produced goods and services is not wise a decision to make in a globalized economy. For example the free trade agreements signed by the U.S. has accounted “for then $900 billion in two-waytrade” (Heritage, p. 4). The total trade the US had with the rest of the world in 2005 was $1.2 trillion(Heritage, p. 2). This in sharp contrast to Colorado’s export in 2006 totaled to $8 billion (export.gov, para. 11). Authorizing ITO to analyze, review, influence Federal government trade negotiation willallow Colorado increase its international trade with the rest of the world.Also, the policy is required in order for Colorado’s legal structure to conform to treaties theFederal government has signed and accepted. By not having laws conformed to international tradeagreements signed by the U.S. government can create legal vulnerability for Colorado State.
Goal
 
Definition
Establish rules, legislation, or other means through which the State of Colorado’s ITO caninfluence international trade agreements. The State will be empowered to become aware of andinfluence U.S. trade policies that will benefit Colorado’s economy and legal structure.
Alternatives
1.House Bill (HB) 07-1015 if passed in present form will add additional duties to C-ITO to review,analyze, and provide input to the office of the United States trade representative to reflect theconcerns of the State of Colorado.2.Contracting with a private firm to lobby the office of the United States trade representative toconsult with Colorado’s government when negotiating international trade agreements. The firm by its proprietary methods will influence U.S. trade representative office to institutionalize theconsultation process with Colorado State government.3.Funding ITO Offices outside of Colorado to become aware of international agreements that willaffect Colorado’s economy and legal structure. By having office outside Colorado, the ITO will be able to meaningfully engage in discussions regarding international trade agreements at thesource.4.Status Quo will continue to rely on US Trade Representative (US-TR) to lobby for the interest of Colorado as part of the United States. This option will not require the ITO to do anything
 
differently. However, this option will not be able to accomplish the goals stated above.
Criteria’s Definitions.
1.
Political Feasibility -
is defined, as weather a proposed policy alternative will be acceptable byrelevant actors such as legislators, governor, and special interest groups. A Low value meansthat there is a high likelihood of meeting resistance from political actors.2.
Administrative Feasibility
– is defined as weather the agency responsible has the capacity toimplement the proposed policy in terms of competent staff, necessary skills, and funds toimplement the policy. A High value implies the responsible agency has the necessarycompetency to implement the policy.3.
Cost – Effectiveness
measures weather the input (funding, human resources, and time) to agiving option will be able to produce greater output. A High value indicates that output exceedsthe input.4.
Effectiveness
 – is defined as whether the desired outcome will enable Colorado to meaningfullyaffect U.S. International Trade Policy in favor of Colorado. A High value indicates that the proposed alternative will achieve its desired outcome. (good)5.
Beneficiary -
is defined here as the benefits to Colorado versus other actors (federal government,other states, etc.). A High value indicates that the State of Colorado will be the most to benefit.Maintaining the status quo has two low ratings in the Beneficiary and Effectiveness category. This isthe worst alternative compared with the other available options. However, the
status quo option
is
highon administrative feasibility
because nothing further needs to be done
.
On Cost-Effectiveness it scoredmedium to high because no additional expenditure of personnel, time, or money is required.The policy option HB07-1015 scored high on four of the five criteria and medium on effectiveness.The high ratings giving to HB07-1015 are in the categories of cost-effectiveness, political feasibility andadministrative feasibility. It scored high on Beneficiary and medium on the Effectiveness criteria. Thehigh rankings being received by HB07-1015 option is recommended because being aware of updatedtrade policies does translate to increased exports for Colorado.The Abroad ITO Offices in foreign markets received a high rating in the beneficiary category only because Colorado will be taking a more direct approach to benefit from international trade. However, itreceived low to medium on effectiveness because ITO will target a predefined geographic area. It didreceive low to medium in political feasibility, and low on the administrative feasibility criterion. Thiscan be attributed to some legislators being opposed to spending Colorado’s money in foreign markets.Current employees at ITO could be reluctant to moving abroad. The ITO Abroad option is therefore nota recommended solution.Contracting out with a firm to help Colorado increase its exports is low on the political feasibility because resistance from responsible agency administrators and from sponsors of ITO in the StateAssembly will be great. The beneficiary criterion is medium because the chance of Colorado expandingits exports will be low. On effectiveness, it is medium because the firms motive at the end of the daywill be getting paid regardless of weather their work increases Colorado’s exports or not.
Policy Recommendation
Passing the proposed HB 07-1015 is the recommended policy option to address the low share of exports compared with the rest of the country. This decision was reached with the aide of five criteriasuch as cost-effectiveness, beneficiary, political feasibility, administrative feasibility, and effectiveness.

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