[Federal Register Volume 78, Number 47 (Monday, March 11, 2013)]
[Notices]
[Pages 15346-15349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05508]
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DEPARTMENT OF COMMERCE
International Trade Administration
Secretarial Infrastructure Business Development Mission to
Brazil, Colombia and Panama; May 12-18, 2013
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Secretary of Commerce will lead an Infrastructure
Business Development Mission to S[atilde]o Paulo and Bras[iacute]lia,
Brazil, Bogot[aacute], Colombia and Panama City, Panama from May 12-18,
2013. This business development mission will promote U.S. exports to
Brazil, Colombia and Panama by helping U.S. companies' launch or
increase their business for infrastructure markets. The mission will
include government and business-to-business meetings, market briefings,
and networking events. In all three countries, the governments and
private sector are investing significant money in infrastructure
projects. As a result, the mission will focus on export-ready U.S.
firms in a broad range of leading U.S. infrastructure industrial
sectors with an emphasis on project management and engineering services
(including construction, architecture and design), transportation
(including road/highways, rail, airports and intelligent transportation
systems), energy (including distribution, transmission and smart grid)
and safety and security.
Companies will have two options to select from when applying for
participation in this mission:
Brazil, Colombia and Panama (May 12-18, 2013)
Colombia and Panama (May 14-18, 2013)
The delegation will be composed of 20-25 U.S. firms representing
the mission's target sectors. Representatives of the Department of
Transportation (DOT), the U.S. Trade and Development Agency (USTDA),
the Export-Import Bank of the United States (Ex-Im) and the Overseas
Private Investment Corporation (OPIC) will be invited to participate to
provide information and counseling regarding their suite of programs
and services in Latin America.
Commercial Setting
Brazil
The Federative Republic of Brazil is Latin America's biggest
economy and is the fifth largest country in the world in terms of land
mass and population with about 197 million people and the world's
seventh largest economy. Bras[iacute]lia is the nation's capital and
seat of government. With almost 20 million people, S[atilde]o Paulo is
the largest city in Brazil, the largest city in the southern hemisphere
and Americas, and the world's seventh largest city by population. It is
the country's economic and financial center and traditional access
point for companies entering the Brazilian market.
Brazil is the U.S.'s seventh largest export market and eighth
largest trading partner. In 2012, U.S. goods exports to Brazil reached
nearly $44 billion, 68% above their 2009 level, and our goods trade
surplus was over $11 billion. GDP growth was slower than usual at 2.7%
in 2011 and around 1% in 2012. Growth slowed due to reduced demand for
Brazilian exports in Europe and Asia, despite solid domestic demand and
a growing middle class. It is expected to rebound to over 3% in 2013
and 2014.
Although there are major export opportunities in Brazil, there are
also substantial challenges, including relatively high tariffs with a
heavy and complex customs system, tax structure, and regulatory
framework. Additionally, U.S. exporters face expanding government
involvement in the marketplace to promote the development or
preservation of Brazilian industries deemed to be strategic, including
increased use of local content and technology transfer requirements. It
is essential for U.S. companies to have local representation in Brazil
to be able to successfully compete with Brazilian and other
international firms.
The Growth Acceleration Program, or PAC (Programa de
Acelera[ccedil][atilde]o do Crescimento) launched in 2007, laid out
investment plans of nearly R$504 billion (US$306 billion) until 2010 to
solve many long-overdue infrastructure issues as well as prepare for
the upcoming 2014 World Cup and 2016 Olympics games for which Brazil
expects to invest $12 billion. The PAC 2, released in March of last
year, was a continuation of the project that promised infrastructure
spending of R$959 billion (US$582 billion) from 2011 to 2014.
Infrastructure opportunities for U.S. companies abound, especially in
the transportation, energy, environment, ports, and ICT sectors.
Colombia
Colombia ranks solidly with the group of progressive,
industrializing countries worldwide that have diversified agriculture,
resources, and productive capacities. Despite the global economic
crisis, Colombia's economic prospects are positive. In 2011, Colombia
enjoyed 5.9% GDP growth and was approximately 4% in 2012. Colombia is
attracting record amounts of foreign direct investment (FDI), which is
further leading to rapid industrial development, necessitating the need
for improved infrastructure. In 2011, Colombia attracted $13 billion in
FDI, and early estimates come in at $15 billion in 2012. In addition,
per capita income continues to grow as Colombia's middle class has
doubled in the past 10 years.
Colombia is the third largest market in the region, after Mexico
and Brazil, and is ranked 22nd as a market for U.S. exports globally.
Over the past 10 years, Colombia has become one of the most stable
economies in the region. Improved security, sound government policies,
steady economic growth, moderate inflation and a wide range of
opportunities make it worthwhile for U.S. exporters to take a serious
look at Colombia.
Bogot[aacute], the capital of Colombia, generates approximately 30%
of the country's total GDP. Bogot[aacute] offers diverse business
opportunities in almost all economic sectors.
The overall improvement in the national safety and security
situation in Colombia has allowed the Government to focus on improving
its infrastructure development, which along with a boom in the
extractive industries, has fueled the growth of U.S. exports to
Colombia, including opportunities generated by highway, hotel and
housing construction in Bogot[aacute] and coastal cities such as
Cartagena and Barranquilla. The Government of Colombia has earmarked
$26 billion over the next 4 years for primarily road projects. However,
on-going and future projects exist in airport modernization, sea and
river port developments, and rail line upgrades. In addition, most
major cities in Colombia are looking for solutions to improve internal
transportation, including mass transit. A recently completed USTDA
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reverse intelligent transportation mission highlighted the
opportunities that exist in Colombia across the board in transportation
infrastructure.
Colombia's traditional acceptance of U.S. brands as well as U.S.
and international standards provide a solid foundation for U.S. firms
seeking to do business there. Moreover, the entry-into-force of the US-
Colombia Free Trade Agreement on May 15, 2012 provided immediate duty-
free entry for 80% of U.S. consumer and industrial exports to Colombia,
with remaining tariffs to be phased out over the next 10 years. The
Agreement also opens the market for remanufactured goods and provides
greater protection for intellectual property rights (IPR).
Panama
Panama has historically served as the crossroads of trade for the
Americas. Its strategic location as a bridge between two oceans and the
meeting of two continents has made Panama not only a maritime and air
transport hub, but also an international trading, banking, and services
center. Panama's global and regional prominence is being enhanced by
recent trade liberalization and privatization, and it is participating
actively in the hemispheric movement toward free trade agreements.
Panama's dollar-based economy offers low inflation in comparison
with neighboring countries and zero foreign exchange risk. Panama and
the U.S. recently implemented a Trade Promotion Agreement (TPA) that
will eliminate 86% of tariffs and duties on U.S. industrial exports to
Panama upon entry into force. But even before the implementation of the
TPA, the U.S. was Panama's most important trading partner, with about
30% of the import market, and U.S. products have enjoyed a high degree
of acceptance in Panama. In 2011, U.S. exports to Panama jumped 34% to
$8.25 billion--in no small part due to the fact that Panama's economy
grew 10.5%. However, international competition for sales is strong
across sectors including telecommunications equipment, automobiles and
heavy construction equipment to name a few.
Panama now enjoys investment grade rating status, granting the
Government of Panama international recognition for recent tax reforms
and its record of steady GDP growth while keeping its deficits under
control (even in 2009, a dismal year for the world economy, Panama's
economy grew 2.9% and the Government of Panama's deficit was only 1% of
GDP). Not only does the investment-grade rating lower the cost of
borrowing for the Government of Panama, but it sends a strong market
signal that Panama, even while carrying a debt ratio that is relatively
high, is one of only five Latin American countries to achieve this
distinction.
Panama's economy is based primarily on a well-developed services
sector, accounting for about 75% of GDP. Services include the Panama
Canal, banking, the Colon Free Zone (CFZ), insurance, container ports,
and flagship registry. Panama is currently engaged in the Panama Canal
expansion project. This project, in conjunction with the expansion of
the capacities of its ports on both the Atlantic and Pacific coasts,
will solidify Panama's global logistical advantage in the Western
Hemisphere.
This logistical platform has aided the success of the CFZ, the
second largest in the world after Hong Kong, which has become a vital
trading and transshipment center serving the region and the world. CFZ
imports--a broad array of luxury goods, electronic products, clothing,
and other consumer products--arrive from all over the world to be
resold, repackaged, and reshipped, primarily to regional markets.
Other Products and Services
The foregoing analysis of infrastructure export opportunities in
Brazil, Colombia and Panama is not intended to be exhaustive, but
illustrative of the many opportunities available to U.S. businesses.
Applications from companies selling products or services within the
scope of this mission will be considered and evaluated by the U.S.
Department of Commerce. Companies whose products or services do not fit
the scope of the mission may contact their local U.S. Export Assistance
Center (USEAC) to learn about other business development missions and
export promotion services that may provide more targeted export
opportunities. Companies may call 1-800-872-8723, or visit the Web
site: http://www.export.gov to obtain such information.
Mission Goals
This mission will demonstrate the United States' commitment to a
sustained economic partnership with Brazil, Colombia and Panama. The
mission's purpose is to support the business development goals for U.S.
firms as they construct a firm foundation for future business in
Brazil, Colombia and Panama and specifically aims to:
Assist in identifying potential partners and strategies
for U.S. companies to gain access to each market for infrastructure
products and services.
Confirm U.S. Government support for activities of U.S.
business in each market and to provide access to senior Brazilian,
Colombian and Panamanian government decision makers.
Listen to the needs, suggestions and experience of
individual participants so as to shape appropriate U.S. Government
positions regarding U.S. business interests in the region.
Organize private and focused events with local business
and association leaders capable of becoming partners and clients for
U.S. firms as they develop their business in the region.
Assist development of competitive strategies and market
access with high level information gathering from private and public-
sector leaders.
Mission Scenario
The mission will stop in S[atilde]o Paulo and Bras[iacute]lia,
Brazil, Bogot[aacute], Colombia, and Panama City, Panama. In each
country, participants will meet with pre-screened potential agents,
distributors, and representatives, as well as other business partners
and government officials. They will also attend market briefings by
U.S. Embassy officials, as well as networking events offering further
opportunities to speak with local business and industry decision-
makers.
Proposed Time Table
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Sunday, May 12................. S[atilde]o Paulo, Business development mission Orientation.
Brazil.
U.S Government Trade Finance Briefing.
Brazil Commercial Opportunity Overview.
Country Team Briefing.
Welcome Dinner.
Monday, May 13................. S[atilde]o Paulo, Industry Briefings/Roundtable Discussions.
Brazil.
One-on-One Business Appointments.
Amcham or other Luncheon Speech.
Networking Reception.
Tuesday, May 14................ S[atilde]o Paulo, Industry Briefings/Roundtable Discussions.
Brazil.
One-on-One Business Appointments.
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OR Government Meetings.
Bras[iacute]lia,
Brazil.
Bogot[aacute], No Formal Events.
Colombia.
Wednesday, May 15.............. Bogot[aacute], Colombia Commercial Opportunity Overview.
Colombia.
Country Team Briefing.
Government Meetings.
Networking Reception.
Thursday, May 16............... Bogot[aacute], Government Meetings.
Colombia.
One-on-One Business Appointments.
Amcham or other Luncheon Speech.
Panama City, Panama Commercial Opportunity Overview.
Panama.
Country Team Briefing.
Networking Reception.
Friday, May 17................. Panama City, Government Meetings.
Panama.
One-on-One Business Appointments.
Amcham or other Luncheon Speech.
Wrap-up Discussion.
Closing Dinner.
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Participation Requirements
All parties interested in participating in the Secretarial
Infrastructure Business Development Mission to Brazil, Colombia and
Panama or Colombia and Panama must complete and submit an application
package for consideration by the Department of Commerce. All applicants
will be evaluated on their ability to meet certain conditions and best
satisfy the selection criteria as outlined below. Approximately 20-25
companies will be selected to participate in the mission from the
applicant pool. U.S. companies doing business with Brazil, Colombia and
Panama, as well as U.S. companies seeking to enter these markets for
the first time may apply.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The fee schedule for each mission is below:
Brazil, Colombia and Panama (May 12-18):
$11,750 for large firms
$9,750 for a small or medium-sized enterprises (SMEs) \1\
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\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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$2,750 each additional firm representative (large firm or
SME)
Colombia and Panama (May 14-18):
$7,300 for large firms
$5,900 for a small or medium-sized enterprises (SMEs)
$1,750 each additional firm representative (large firm or
SME)
Expenses for travel, lodging, most meals, and incidentals will be
the responsibility of each mission participant. Flight costs between
mission stops are included in the participation fee.
Conditions of Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary market objectives,
and goals for participation. If the Department of Commerce receives an
incomplete application, the Department may reject the application,
request additional information, or take the lack of information into
account when evaluating the applications.
Each applicant must also:
Certify that the products and services it seeks to export
through the mission are either produced in the United States, or, if
not, marketed under the name of a U.S. firm and have at least 51% U.S.
content. In cases where the U.S. content does not exceed 50%,
especially where the applicant intends to pursue investment and major
project opportunities, the following factors may be considered in
determining whether the applicant's participation in the business
development mission is in the U.S. national interest:
[cir] U.S. materials and equipment content;
[cir] U.S. labor content;
[cir] Repatriation of profits to the U.S. economy;
[cir] Potential for follow-on business that would benefit the U.S.
economy;
Certify that the export of the products and services that
it wishes to export through the mission would be in compliance with
U.S. export controls and regulations;
Certify that it has identified to the Department of
Commerce for its evaluation any business pending before the Department
of Commerce that may present the appearance of a conflict of interest;
Certify that it has identified any pending litigation
(including any administrative proceedings) to which it is a party that
involves the Department of Commerce; and
Sign and submit an agreement that it and its affiliates
(1) have not and will not engage in the bribery of foreign officials in
connection with a company's/participant's involvement in this mission,
and (2) maintain and enforce a policy that prohibits the bribery of
foreign officials.
Selection Criteria for Participation
Selection will be based on the following criteria, listed in
decreasing order of importance:
Suitability of a company's products or services to the
target markets and the likelihood of a participating company's
increased exports to or business interests in the target markets as a
result of this mission;
Demonstrated export experience in the target markets and/
or other foreign markets;
Consistency of company's products or services with the
scope and desired outcome of the mission's goals;
Current or pending major project participation; and
Rank/seniority of the designated company representative.
Additional factors, such as diversity of company size, type,
location, and demographics, may also be considered during the review
process.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
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Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register (https://www.federalregister.gov/), posting on ITA's business development
mission calendar (http://export.gov/trademissions) and other Internet
Web sites, press releases to general and trade media, direct mail,
broadcast fax, notices by industry trade associations and other
multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows.
Recruitment will begin immediately and conclude no later than
Friday, March 22, 2013.
The Department of Commerce will evaluate applications and inform
applicants of selection decisions at 2 points during the recruitment
period. A portion of the participants will be selected each time and
informed of their selection as soon as possible in order to allow them
to begin preparing for the business development mission. All remaining
applications and any additional applications received in the interim
will be evaluated simultaneously at the following evaluation. Deadlines
for each round of evaluation are as follows:
Friday, March 8, 2013
Friday, March 22, 2013
Applications received after the March 22nd deadline will be
considered only if space and scheduling constraints permit.
How To Apply
Applications can be downloaded from the business development
mission Web site (http://export.gov/BrazilColombiaPanama2013) or can be
obtained by contacting the Office of Business Liaison (below).
Completed applications should be submitted to the Office of Business
Liaison at (email: [email protected] or fax: 202-482-4054).
Contacts
General Information and Applications: The Office of Business
Liaison, 1401 Constitution Avenue NW., Room 5062, Washington, DC 20230,
Tel: 202-482-1360, Fax: 202-482-4054, Email: [email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-05508 Filed 3-8-13; 8:45 am]
BILLING CODE 3510-FP-P