The Evers Effect: The Governor’s Trade Missions Have Not Been Good for Wisconsin

Trade Missions or Taxpayer-Funded Getaways?

Since becoming governor of Wisconsin, Governor Evers has enjoyed at least three major trips at taxpayer expense, all under the pretense of improving the state’s trade relations with six foreign countries.

While these trips––or "trade missions" as the press release calls them––may include business representatives and a host of other dignitaries, it remains unclear precisely how the people of Wisconsin have benefited, or whether these trips are anything other than glorified destination getaways.

For example, in September 2019, Evers took a widely publicized nine-day trip to Japan. Among his goals was to “help promote state exports.” However, since his return, exports from the state to Japan are down by $83 million––a decline of over 11%! Without even adjusting for inflation, Wisconsin exports to Japan are down by over $63 million between the period of 2009-2024.

Furthermore, increasing the export of Wisconsin's agricultural products was a special emphasis of the trip. At the time of his announcement, Evers touted that agricultural exports to Japan were up 21% year over year. But that was 2018-2019.

Since then, agricultural exports are down by more than $3 million––a 35% decline since the year of his trip.

Some 28 people had the privilege of tagging along on this trip, including First Lady Kathy Evers, COO of WEDC Tricia Braun, multiple administrative officials from UW-Platteville, and 13 executives from nine Wisconsin companies.

What exactly their contributions were to these negotiations is unknown, but evidently their contributions were not enough to advance, let alone maintain, a mutually beneficial trade deal between Wisconsin farmers and Japanese consumers.

Evers's European Escapade

After a COVID-19-induced interlude in his travel schedule, Evers embarked on his second trade mission in September 2023––this time to Europe.

Three countries were on the delegation's itinerary including Belgium, Luxembourg, and the Netherlands.

Among the delegation's stated objectives was to demonstrate the state’s “expertise in advanced manufacturing, biotech, food manufacturing, energy, and technological industry,” in hopes of increasing the State's exports of these commodities. On the one hand, Wisconsin exports to Belgium and the Netherlands were at record highs in 2023, but on the other hand, the state exported less than $1 million in commodities to Luxembourg––making it an odd choice for a visit.

Fortunately exports to the Netherlands have nearly doubled since Evers took office (up by 78% since 2019), but exports in machinery––one of the principal reasons for the trip in the first place––have actually fallen by over $50 million.

Again, given the incredible amount of inflation that has occurred since 2019, a decrease in trade volume signifies a significant decrease in the volume of real machinery exports to the Netherlands... a somewhat counterproductive trade mission to say the least.

The Governor's German Getaway

Most recently, earlier this month the governor set sail (or more likely, took flight via private jet) on yet his third trade mission, this time to Germany (a stop in France was on the itinerary as well).

Now, Germany has been a healthy market for Wisconsin exports in recent years. In 2023, the country bought over $1 billion in Wisconsin products, enough to make them the state’s fourth-largest trading partner. So, in order to strengthen this partnership, Evers made it a point to stress the importance of medicine and biohealth technology production in the state. However, pharmaceutical exports to France have continued to fall and are down by over 92% since 2018, and exports to Germany are only slightly higher than they were in the third year of the Evers administration.

If we adjust these trade volumes for inflation, then in real terms, exports to Germany are almost exactly the same, and real exports to France are down by a lot, despite the efforts of the Evers delegation. The astute reader will notice a recurring theme throughout these trade missions; that is, they tend not to benefit Wisconsin and often wind up hurting Wisconsin.

The Evers Effect

Six years ago, this fall, the governor took a trade mission trip to Japan while boasting about “deep ties" and promoting state exports. But exports to Japan are down, not up, and the governor continues to embark on new trade missions.

It’s too soon to analyze what the impact of his trip to Germany and France will be. But the governor has now visited five European countries in less than two years’ time, and if past performance is any indication of what's to come, the ‘Evers Effect’ will certainly apply to these nations as well.

We can appropriately label the ‘Evers Effect’ to any economic policy that results in fewer exports, fewer business opportunities, and less wealth for Wisconsin.