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Editor’s note: This Q&A was contributed by the Georgia Department of Economic Development as a reflection on the state’s nearly half-century operating a trade and investment office in Japan, one of 12 around the world. They examine below how subnational cooperation — when states, cities and other jurisdictions work together to foster their own global relationships — can help companies based in the state as they expand abroad.
This November, GDEcD participated in the first in-person Southeast U.S.-Japan Alliance (SEUS-Japan) conference since the pandemic, while also preparing for the upcoming 50th anniversary of Georgia’s Japan Office. On Dec. 15, the Japan-America Society of Georgia celebrated its annual Bonenkai holiday gala.
Below is a conversation with Mary Waters, deputy commissioner for trade at GDEcD, and Joseph Huntemann, managing director of Georgia’s Japan Office, who share insights into Georgia’s international offices, Georgia’s long-standing relationship with Japan and how Georgia businesses can work with GDEcD’s International Trade team to connect with potential business partners or enter new markets.
How do the international representatives promote economic relationships between the State of Georgia and international markets?
Mary Waters: Georgia’s international representatives embody the state’s long-term commitment to global markets. Our representatives have strong connections to the business community in-country and support the state’s integrated approach to economic development: generating investment leads; forging strong sub-national economic relationships; and promoting exports of high-quality Georgia products and services.
Joseph Huntemann: Exactly. The international offices serve as a direct bridge between Georgia and the overseas markets where they are located. The offices promote Georgia as a source of exports, an investment location, and even as a tourism destination. To accomplish that, the offices maintain in-country networks of business leads, existing Georgia industries, service providers, and grassroots connections like expat communities, among others. Each office serves as the ‘face’ of Georgia overseas.
The State of Georgia’s Japan Office is celebrating 50 years next year. How would you describe the Georgia-Japan relationship?
MW: Georgia’s robust partnership with Japan has matured and deepened over the last five decades. The trade and investment statistics are impressive on their own: $8.2 billion in bilateral trade and more than 300 Japanese facilities in Georgia.
Japan is clearly a leading trade and investment partner, but our connections are reciprocal. Japanese companies contribute to stronger, more vibrant communities all across Georgia, and investment by Georgia-based companies is equally important and impactful in Japan. For example, AFLAC’s presence in the Japanese market extends nearly 50 years, and the company is a household name across Japan. These reciprocal partnerships establish the strong foundation from which to continue building for the future.
JH: I’d add that the Georgia-Japan relationship has both breadth and depth commensurate with its long history. Japanese investments have continued for those same 50 years, with over 30,000 Georgians employed by hundreds of Japanese companies across the state. Those companies cover a broad spectrum of the economy, with food processing, automotive, finance and pharmaceuticals among the industry sectors covered. There is also a substantial cultural and diplomatic presence here, with the Consulate General of Japan, the Japan External Trade Organization and the Japan-America Society of Georgia, among others.
Why is the relationship between Georgia and Japan so strong?
JH: In both Japan and Georgia, there is an incredibly strong team-focused approach to business. In Japan it’s common sense to build consensus and make sure that every necessary role in a project is covered. At GDEcD, that means bringing together state, local, and private partners to ensure the success of businesses.
MW: In addition to a partnership-driven approach to business, both Georgia and Japan share an understanding of the importance of building long-term relationships for economic success. Relationships are key to everything that we do at GDEcD. I think it’s important to recognize that business decisions are, fundamentally, about people. It isn’t simply transactional; you have to build those relationships.
That’s one of the ways assets like Hartsfield-Jackson Atlanta International Airport play a role in Georgia’s economic development strategy. Direct air service between Tokyo and Atlanta helps make forging and sustaining these relationships easier, and it gives Georgia companies and industries an advantage on a global scale.
How do your teams support Georgia companies that are interested in finding import or export partners in Japan?
MW: Japan is a very competitive and quality-conscious market, and might not be an immediate fit for every Georgia exporter. Regulatory requirements, customer service considerations and language barriers can pose challenges, particularly for inexperienced exporters. But there is opportunity in the Japanese market as well. Ultimately, companies need to have the best, most accurate data available in order to make decisions about entering a new market. Helping companies assess the opportunities to expand exports is the fundamental role of Georgia’s representative in Japan.
JH: Specifically, we work through market assessments, business partner searches, and general advice to our Georgia companies. The Japanese market can be very daunting for overseas companies. Regulatory requirements can be strict, and it is often tricky adapting Western products to local tastes in a way that will have lasting appeal to the Japanese. We do our best to provide up-front, accurate information on these potential hurdles, and work with experts and service providers who can help them navigate these unique aspects of the market.
What is SEUS-Japan? What opportunities does it create?
MW: The Southeast U.S. Japan Association was established in 1976 to promote the southeastern region to Japanese companies looking to expand into the U.S. market. The goal of the Alliance is to spur greater trade, investment, and tourism on a bilateral basis, and it has been hugely successful since its inception almost 50 years ago. As strategic industries and global opportunity have evolved over the years, the Alliance has evolved to address them. Ultimately, the Alliance provides an opportunity for business, economic development, and political leaders to come together and address common concerns and develop mutually beneficial solutions for companies across Japan and the Southeast region of the U.S.
JH: In addition to the networking and information-sharing opportunities that come with it, the conference offers participants the chance to explore opportunities ‘on the ground’ both in the U.S. and Japan while attending, as the conference venue alternates between the two countries each year.
Why are subnational organizations and cooperation important?
MW: While national policies establish the ‘rules of the road’ for global commerce and strategic innovation, most of the work gets done at the subnational level. Ultimately, companies will find solutions to common problems by working together with their peers and strategic partners around the world. Subnational organizations like SEUS-Japan and SEUS-Canada play an important role creating opportunities for companies to come together, discuss common challenges, and develop new business opportunities.
JH: What Mary said is true. National-level organizations are often more concerned with solving broad issues and general policy problems. Subnational groups are better able to hear directly from local people and businesses, and adapt quickly to the specific problems and issues faced by them. In many instances, these strategies can then serve as a model for other organizations to emulate in overcoming those issues.
What key takeaways did you have from this year’s SEUS-Japan?
JH: The key takeaway I gained was that both sides are ready to move on to the post-COVID economy. The conference itself was held again in-person, and the agenda was clearly set to look forward to emerging challenges and technologies such as EVs, the renewable energy economy, and a reinvigorated space exploration regime.
MW: Agreed. There was a pent-up demand to reconvene and interact in-person after a hiatus due to COVID-19. This year’s conference also underscored that the Southeast region is well-positioned as a hub for emerging manufacturing technologies that will dominate in the years ahead. Our region has also fared better with supply chain disruptions than other parts of the world, and that is an important consideration for Japanese companies seeking to reinforce or streamline their supply chains.
If a Georgia business is interested in finding import or export partners in Japan, how would you recommend they get started?
JH: By all means, they should first contact GDEcD’s Trade team led by Mary Waters to get started. The staff there have the knowledge and expertise to put together a profile and request that our Tokyo office will then be able to take up and use to identify relevant resources on the ground in Japan and offer valuable advice.
MW: Like Joseph said, our team is Atlanta is always ready to help a business get on the right path for successful market entry.
To learn more about Georgia’s connections with Japan and other countries, visit www.georgia.org/international/relations-protocol/global-country-connections. Learn more about the state’s international trade team at www.georgia.org/international/trade.
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