2011-308. U.S. Aerospace Supplier & Investment Mission

AGENCY:

International Trade Administration, Department of Commerce.

ACTION:

Notice.

Mission Description

The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service is organizing a U.S. Aerospace Supplier & Investment Mission to Montreal, Canada on May 2-4, 2011. This aerospace mission is an ideal opportunity for U.S. aerospace companies to gain valuable international business leads in a low risk, highly important international aerospace market. Canada has the fifth largest aerospace industry in the world; in 2009 it generated over $22 billion in revenues. Participating U.S. companies will receive market briefings by Canadian industry experts, seminars on exporting best practices, participate in pre-scheduled, pre-qualified one-on-one meetings with Canadian aerospace supply chain contacts, engage in networking activities and visit key Canadian aerospace OEM plants such as Bombardier. This mission is designed to provide U.S. aerospace companies with a highly effective and unique opportunity to establish supplier relations with major Canadian aerospace companies. This mission presents strong potential for high returns given these factors and the ongoing support of USCS Canada.

Commercial Setting

Canada is a receptive market to U.S. aerospace goods and services and presents an ideal opportunity for the U.S. Commercial Service to contribute to the President's National Export Initiative. The United States and Canada share the largest and most dynamic commercial relationship in the world; U.S. trade with Canada exceeds total U.S. trade with the 27 countries of the European Union combined. Canada also represents the number one export market for 36 of our 50 states and is among the top five export markets for another ten states. The aerospace sector is one of CS Canada's best prospects.

Canada's aerospace industry is the fifth largest in the world; in 2009 total aerospace sales were US $22.2 billion. The United States is Canada's largest supplier of aircraft parts and components; on average, Canadian aerospace companies purchased 55% of their inputs from the United States. In 2009, U.S.-Canada aerospace bilateral trade exceeded $13 billion, and total U.S. aerospace exports to Canada were approximately $6 billion. In 2009 Canada was the United States' 6th largest aerospace export market, and in many aerospace sub-markets was often in the top 5. Industry estimates show an expected recovery of the global aerospace industry to begin in 2011 that will positively impact Canada's largely commercial aircraft manufacturing sector. Further, industry analysts also predict a positive long term growth in commercial aircraft production over military aircraft; since Canada's aerospace sector is 83% civil, this anticipated trend will bode well for U.S. companies wanting to sell to this market. Canada is a world leader in business and regional aircraft, commercial helicopters, turbine engines, flight simulators, avionics, and a broad range of aircraft systems, components and equipment.

Quebec and Ontario are at the heart of the Canadian aerospace industry with about 51% and 29% of local production respectively. Montreal is the world's third largest aerospace cluster after Toulouse and Seattle, and is the only place in the world where an aircraft can be assembled within a 30-mile radius. Montreal is home to renowned industry leaders such as Bombardier Aerospace, Bell Helicopter Textron, Pratt & Whitney Canada, and CAE. To this exceptional concentration of world leaders, we can add other big names such as Rolls-Royce Canada, Héroux Devtek, Messier-Dowty, CMC Electronics—Esterline, Thales Canada, and many other suppliers.

Canada's geographic proximity, open market economy, stable business climate and receptivity to U.S. goods and services make it the ideal market for contributing to the goals of the Administration pursuant to the National Export Initiative. The North American Free Trade Agreement (NAFTA) allows for most U.S. products to enter Canada duty-free and therefore further contributes to the relatively low-cost, low-risk, access that U.S. SMEs can use to prosper and grow in this foreign marketplace. Canada is a party to the World Trade Organization agreement on trade and civil aircraft.

Mission Goals

The trade mission's goal is to advance the goals of the Administration pursuant to the National Export Initiative by providing U.S. suppliers of aerospace products the opportunity to meet with key potential customers such as Canadian aerospace OEMs, sales agents and distributors and obtain export successes in Canada.

Mission Scenario

Participants in the mission to Canada will benefit from a full range of business facilitation and trade promotion services provided by the U.S. Commercial Service in Canada. Participants will receive a briefing by a panel of experts on the Canadian, Quebec and Ontario aerospace markets, an overview of doing business in Canada, and seminars with additional key information for U.S. exporters. It will also include one-on-one business meetings between U.S. participants and potential Canadian business partners, networking opportunities, and tours of some of the largest aerospace OEMs, where companies will have the opportunity to meet senior representatives and learn about planned projects and expected procurement needs. Please see the timetable below with detailed information on the program. Prior to the end of the mission, Commercial Service staff will counsel participants on follow-up.

Timetable

The proposed schedule allows for three days in Montreal and describes the programming we are planning for participating U.S. companies.

Sunday, May 1	Participants arrive in Montreal.
	6:00 p.m. No-Host Ice Breaker and No-Host Dinner.
Monday, May 2	8:00-8:30 Mission welcoming remarks by Consul General/SCO & Mission Logistics Briefing.
	8:30-9:30 Presentation: Doing Business in Canada.
	9:30-10:30 Presentations: Trends in the Canadian Aerospace Sector Panel: Deloitte Touche, AIAC, Minister of Transport, NRC.
	10:30-11:00 Coffee break—Networking.
	11:00-12:30 Presentations: Canada's Aerospace Market, Quebec's Aerospace Market, Ontario's Aerospace Market.
	12:30-13:30 Lunch break (on their own).
	14:00-16:00 Seminars: Exporting to Canada Best Practices; U.S. EXIM BANK; U.S. Export Controls in Canada-U.S. Aerospace Trade.
Tuesday, May 3	PROGRAM FOR U.S. COMPANIES.
	8:30-12:00 Business matchmaking appointments.
	12:00-14:00 General event networking lunch.
	14:00-16:30 Business matchmaking appointments.
	17:30-19:30 General event reception hosted by CG.
Wednesday, May 4	9:00-15:00 Plant tours of Canadian aerospace OEMs for U.S. Companies.
	16:00-16:30 Mission debriefing at hotel.
	PROGRAM END.

Participation Requirements

All parties interested in participating in the U.S. Aerospace Trade and Investment Mission 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. The mission is designed for a minimum of 15 and a maximum of 20 companies will be considered for this mission. U.S. companies already doing business in the target markets as well as U.S. companies seeking to enter these markets for the first time are encouraged to apply.

Fees and Expenses

After a company has been selected to participate in the mission, a participation fee paid to the U.S. Department of Commerce is required. The participation fee will be $3,000 for large firms and $2,000 for a small or medium-sized enterprise (SME),* with up to two company representatives. The fee for a third company representative is $250. Expenses for travel, lodging, in-country transportation (except for bus transportation to visit local aerospace OEMs on the third day of the mission), meals and incidentals will be the responsibility of each mission participant.

Conditions for 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 to be promoted through the mission are either produced in the United States or marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.

Selection Criteria for Participation

For Companies:

• Suitability of the company's products or services for the Canadian aerospace market
• Applicant's potential for business in Canada, including the likelihood of exports resulting from the mission
• Consistency of the applicant's goals and objectives with the stated scope of the mission

Diversity of company size, type, location, and demographics and traditional underrepresentation in business, 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.

Timeframe for Recruitment and Applications

Mission recruitment will be conducted in an open and public manner, and will commence as soon as the trade mission is approved. Outreach will include publication in the Federal Register, posting on the Commerce Department trade mission calendar (http://www.ita.doc.gov/​doctm/​tmcal.html) 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. CS Canada intends to conduct a webinar on “Opportunities in the Canadian Aerospace Market” to supplement recruitment efforts in January/February 2011.

Recruitment for the mission will begin immediately and close on March 14, 2011. Applications received after March 21, 2011 will be considered only if space and scheduling constraints permit. Applications will be available online on the mission Web site at: http://www.buyusa.gov/​Canada.

Information can also be obtained by contacting the mission contacts listed below.

Contacts: Gina Rebelo Bento, Commercial Specialist—Aerospace, U.S. Consulate General in Montreal, PO Box 65 Desjardins Station, Montreal, QC H5B 1G1, Tel: [phone], E-mail: [e-mail].

Frank Spector,

Global Trade Programs, U.S. & Foreign Commercial Service.

Footnotes

* 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/​contracting opportunities/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).