[Federal Register Volume 64, Number 224 (Monday, November 22, 1999)]
[Notices]
[Pages 63788-63790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30380]
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DEPARTMENT OF COMMERCE
International Trade Administration
Business Development Mission to Brazil, Uruguay, Argentina and
Chile
Agency: International Trade Administration, Department of Commerce.
Action: Notice of business development mission to Brazil, Uruguay,
Argentina and Chile.
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Summary: This notice serves to inform the public of a Secretarial
Business Development Mission to Brazil, Uruguay, Argentina and Chile,
February 13-21, 2000, and of the opportunity to apply for participation
in the mission; sets forth objectives, procedures and participation
criteria for the mission; and requests applications.
Dates: Applications should be submitted to Lucie Naphin by December 27,
1999, in order to ensure sufficient time to obtain in-country
appointments for applicants selected to participate in the mission.
Applications received after that date will be considered only if space
and scheduling constraints permit. Recruitment and selection of private
sector participants will be conducted according to the Statement of
Policy Governing Department of Commerce Overseas Trade Missions
announced by Secretary Daley on March 3, 1997.
Addresses: Request for and submission of applications--Applications are
available from Lucie Naphin, Director, Office of Business Liaison, at
(202) 482-1360 or via facsimile at (202) 482-4054. Numbers listed in
this notice are not toll-free. An original and two copies of the
required application materials should be sent to Ms. Naphin.
Applications sent by facsimile must be immediately followed by
submission of the original application to Ms. Naphin at the following
address: Office of Business Liaison, Room 5062, U.S. Department of
Commerce, 14th Street and Constitution Ave., NW, Washington, DC 20230.
For Further Information Contact: Lucie Naphin, Director of the Office
of Business Liaison, or Jennifer Andberg at (202) 482-1360. Information
is also available via the International Trade Administration's (ITA)
website at: http://www.ita.doc.gov/doctm.
Supplementary Information:
Description of the Mission
Secretary of Commerce William M. Daley will travel to Brazil,
Uruguay, Argentina and Chile as head of a senior-level business
development mission focused on three key growth sectors--information
and communications technology, environment and energy. Brazil, Uruguay
and Argentina, together with Paraguay, form Mercosur, the acronym in
Spanish for the Southern Common Market, the world's fourth largest
economic area, a customs union with a population in excess of 200
million people and a combined GDP of approximately $1 trillion. Chile,
along with Bolivia, is an associate member of Mercosur.
The mission will visit Brasilia, Sao Paulo, Montevideo, Buenos
Aires and Santiago. The overall focus of the trip will be commercial
opportunities for U.S. companies, including joint ventures, presented
by the continuing market liberalization and privatizations within
Mercosur. In each country, briefings and matchmaking business
appointments will be arranged for members of the business delegation in
order that they may take full advantage of the commercial opportunities
available to firms in these key South American markets. Individual
country briefings will include local public and private sector
officials to discuss developments in the country that affect the
commercial environment.
[[Page 63789]]
Commercial Setting for the Mission
Participants in the mission will be drawn from, but not limited to,
the following sectors:
Information and Communications Technology: Brazil is Latin
America's most important telecommunications market for U.S. companies.
U.S. companies' telecommunications exports to Argentina totaled $461.4
million in 1997--nearly doubling the 1996 total of $238 million. Chile
is the most advanced telecommunications market in Latin America. A 20-
25 percent annual growth rate is predicted within Chile for the next
five years, with investments projected at $700 million annually.
Environment: Brazil is the largest environmental
technologies market in South America, totaling an estimated $3.65
billion for 1997, with growth projections for equipment sales ranging
from 8-10 percent per year over the next five years. Argentina is the
second largest environmental technologies market in South America,
totaling an estimated $885 million for 1998. Over the last five years,
investment in the environmental sector has doubled. The Chilean
environmental market totaled approximately $460 million in 1997 and is
expected to grow by between 8 and 10 percent through 2000.
Energy: Brazil is expected to make annual investments of
$8 billion over the next five years to meet its rapidly increasing
energy demand. Argentine electricity planners expect consumption to
continue to grow 5 percent annually for the next decade with investment
opportunities in natural gas combined cycle power generation plants,
transmission and distribution networks. Chile's electricity demand--
over 29,000 GWh in 1998--is averaging 7 percent annual growth. Natural
gas, coal-fired and hydro power plants totaling 3,500 MW of generating
capacity are currently under construction or planned and offer
potential investment and trade opportunities.
Mercosur
Mercosur encompasses 50 percent of Latin America's Gross Domestic
Product, 43 percent of its population, 59 percent of its total
landmass, 50 percent of its industrial production and intra-regional
trade and 33 percent of total Latin American foreign trade. Its
nations' per capita income is 30 percent higher than that of Latin
America as a whole.
Reforms implemented by the individual countries have produced
impressive growth rates. The strong GDP growth recorded by the region
in the 1990s has been underpinned by a surge in foreign trade and
direct investment. Since 1990, U.S. export sales to the rest of Latin
America and the Caribbean have increased 150 percent, and by almost 250
percent to the countries of Mercosur, reaching $22.4 billion in 1998.
U.S. investments within the Mercosur region have increased
dramatically during the 1990s, reaching a total of $40 billion by 1998.
U.S. companies have invested in a broad range of sectors from
transportation infrastructure and national utilities, to mining and
industry, to services and agriculture. In Brazil, U.S. investment now
exceeds $38 billion, to the point where the United States is Brazil's
largest investor, accounting for one-third of total foreign investment.
In fact, Brazil is home to more U.S. direct investment than Mexico.
However, even before the global financial crisis hit Brazil and led
to its January 1999 devaluation, a general slowdown in Brazil and the
other Mercosur economics was causing U.S. exports to slump. U.S.
exports to Mercosur declined by 3.4 percent, falling by almost $800
million in 1998, compared to 1997. Even so, our trade is still
substantial. U.S. exports to Mercosur last year exceeded $22.4 billion,
ranking the region as our 6th largest export market.
The slowdown is clearly visible in U.S. trade performance.
Excluding Mexico, 1998 marked the first time since 1986 that our total
trade with Latin America declined, with our exports to the region flat
and imports falling. For the year, U.S. exports to Brazil declined 5
percent; to Chile by 9 percent; and virtually all other countries
within the region showed a reversal from recent double-digit export
growth. Our balance-of-trade has decreased dramatically during the
first 9 months of 1999 when compared with the same period last year.
Fortunately, recent reports indicate that the Latin downturn may be
short lived, with growth returning to many of the countries in the year
2000.
Already Brazil has evidenced signs of a more rapid than expected
recovery following its January devaluation. The government of Brazil is
forecasting an overall trade surplus in 1999. Interest rates remain
high, but they are far lower than the levels seen last fall and winter.
Brazil has been lowering rates steadily since March. Most observers
predict that positive growth will resume by the end of the year.
Several important sectors, such as transportation, telecommunications
and agriculture, have continued to grow even during the recession.
Positive Brazilian growth should have a salutary effect, both on
overall regional economic prospects and for a rebound in U.S. exports
and investment. Brazil, after all, is the largest economy in Latin
America, the 9th largest in the world and our largest South American
trading partner. Its gross national product is nearly equal to that of
the rest of South America combined. It is also a key market for Latin
nations, particularly within the southern cone. Indeed, Argentina, the
second largest economy in South America, sends roughly 30 percent of
its exports to Brazil and has been severely affected by the Brazilian
recession.
The continuing recovery in Asia should provide an impetus for
growth in other Latin countries. Chile is but one example. Mired in a
recession for much of the past year caused by declining world prices
for its primary export commodity--copper--and the contraction of Asian
markets which account for almost 30 percent of Chilean exports, Chile
has nonetheless appeared to weather the worst of its economic storm.
Business confidence is returning and the longer term outlook for
Chile's economy is positive. Export commodity prices are recovering,
and after a year of very low or zero growth in 1999, the government of
Chile expects a rebound to 5.5 percent growth in 2000.
Goals for the Mission
The mission will further both U.S. commercial policy objectives and
advance specific business interests. It is aimed at:
Introducing American companies to Mercosur and promoting
expanded commercial opportunities in Mercosur;
Advocating on behalf of U.S. firms already active in
Mercosur;
Resolving market access issues for U.S. companies in
Mercosur, particularly in light of Mercosur's integration efforts, both
internally and with other markets; and
Advancing U.S. economic/commercial policy objectives in
the FTAA negotiations, particularly as it will allow the Secretary to
engage Argentine officials in a timely discussion of their FTAA goals,
as they will have the Chairmanship of the FTAA process. The Secretary
and participating U.S. companies will be among the first high-level
U.S. officials to interact with the newly elected governments in
Argentina, Uruguay and Chile.
Scenario for the Mission
Briefings and matchmaking business appointments will be made for
members of the business delegation in Brazil,
[[Page 63790]]
Uruguay, Argentina and Chile. In Mercosur, the business of the mission
will consist of:
Embassy briefings on the economic/commercial climates;
Meetings with Ministers and other senior level government
officials with responsibilities for the mission's focus sectors;
Meetings with potential buyers, agents/distributors and
partners.
Meetings with the U.S. business community.
The Commerce Department's U.S. and Foreign Commercial Service will
provide logistical support for these activities at each stop.
The trip itinerary will be as follows:
February 13 (Sun): Brasilia
February 14 (Mon): Brasilia--Depart Brasilia for Sao Paulo; Arrive Sao
Paulo
February 15 (Tue): Sao Paulo
February 16 (Wed): Depart Sao Paulo for Montevideo; Arrive Montevideo
February 17 (Thu): Depart Montevideo for Buenos Aires; Arrive Buenos
Aires
February 18 (Fri): Buenos Aires
February 19 (Sat): Buenos Aires
February 20 (Sun): Depart Buenos Aires for Santiago--Arrive Santiago
February 21 (Mon): Santiago--Depart Santiago for Washington, D.C.
February 22 (Tues): Arrive Washington, D.C.
Criteria for Participation of Companies
The recruitment and selection of private sector participants in the
mission will be conducted according to the Statement of Policy
governing Department of Commerce-led trade missions announced by
Secretary Daley on March 3, 1997. Companies will be selected according
to the criteria set out below. Approximately 12-15 companies will be
selected.
Eligibility
Participating companies must be incorporated in the United States.
A company is eligible to participate only if the products and/or
services that it will promote on the mission (a) are manufactured or
produced in the United States; or (b) if manufactured or produced
outside the United States, are marketed under the name of a U.S. firm
and have U.S. content representing at least 51 percent of the value of
the finished good or service. (At the discretion of the Department,
which will generally be exercised on a sector-by-sector basis, the 51
percent U.S. content requirement may be modified or waived.)
Selection Criteria
Company participation will be determined on the basis of:
Level of seniority of designated company representatives
and its appropriateness to the mission objectives;
Consistency of company's goals with the scope and desired
outcome of the mission as described herein;
Relevance of a company's business line to the plan for the
mission;
Past, present and prospective business activity in Latin
America, and particularly Brazil, Uruguay, Argentina and Chile, as
applicable; and
Diversity of company size, type, location, demographics
and traditional under-representation in business.
In addition, the Department may consider whether the companies'
overall business objectives, including those of any U.S. or overseas
affiliates, are fully consistent with the missions' foreign and
commercial policy objectives.
An applicant's partisan political activities (including political
contributions) are irrelevant to the selection process.
Time Frame for Applications
Applications for the trade mission to Brazil, Uruguay, Argentina
and Chile will be made available beginning on or about Monday, November
22. The fees to participate in the mission have not yet been
determined. The fees will not cover travel or lodging expenses. For
additional information on the trade missions or to obtain an
application, business persons should be referred to Lucie Naphin,
Director of the Office of Business Liaison, or Jennifer Andberg at 202-
482-1360. Applications should be submitted to Lucie Naphin by December
27, 1999, in order to ensure sufficient time to obtain in-country
appointments for applicants selected to participate in the mission.
Applications received after that date will be considered only if space
and scheduling constraints permit.
Authority: 15 U.S.C. 1512.
Dated: November 17, 1999.
Walter M. Bastian,
Director, Office of Latin America and the Caribbean, International
Trade Administration, Department of Commerce.
[FR Doc. 99-30380 Filed 11-19-99; 8:45 am]
BILLING CODE 3510-DA-P
