[Federal Register Volume 62, Number 243 (Thursday, December 18, 1997)]
[Notices]
[Pages 66339-66341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32966]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


Secretarial Business Development Mission to Turkey

SUMMARY: Secretary of Commerce William M. Daley will lead a business 
development mission to Turkey, one of Eurasia's most significant 
emerging markets, to promote expanded trade opportunities, advocate for 
U.S. business interests, advance significant commercial policy 
objectives, and support the inaugural meeting of the U.S.-Turkey 
Business Development Council.
    This mission to one of the most rapidly growing Big Emerging 
Markets will advance the Secretary's priorities on behalf of American 
firms and workers, including: (1) Ensuring participation by U.S. firms 
in major Turkish projects; (2) reducing/eliminating non-tariff barriers 
to U.S. exports and investments; (3) securing compliance with trade 
agreements, especially those related to international arbitration; (4) 
advocating for acceptable terms for U.S. energy investment projects; 
and (5) strengthening Turkish government officials and business 
executives' favorable impression of U.S. technology, business practices 
and companies.
    The Secretary's mission will focus on the energy sector, with 
particular

[[Page 66340]]

emphasis on power equipment and services and will include U.S. 
companies whose interests range from assessing opportunities in the 
Turkish market to expanding existing business relationships. The 
mission will begin in Ankara, the capital of Turkey, for meetings with 
Government officials, Turkish business representatives and U.S. 
companies currently active in Turkey. It will continue on to Istanbul. 
A key focus of the mission will be to explore ways U.S. firms may put 
their technologies and know-how to work in helping Turkey to execute 
pending power development projects, which will total billions of 
dollars. The mission also will seek to capitalize on opportunities in 
other sectors for mutually-beneficial trade and investment.

DATES: January 19-21, 1998.

ADDRESSES: (none).

FOR FURTHER INFORMATION CONTACT: Applications may be submitted any time 
after December 15th to Cheryl Bruner, Director of the Office of 
Business Liaison, or Eric Schwerin at (202) 482-1360, fax (202) 482-
4054. All applications must be received by January 7, 1998. 
Applications received after January 7th will be considered on a space 
available basis.

SUPPLEMENTARY INFORMATION:

    The Mission itinerary will be as follows:

January 18 (Sunday)--Mission arrival and orientation
January 19 (Monday)--Ankara
January 20 (Tuesday)--Ankara with departure for Istanbul
January 21 (Wednesday)--Istanbul--Mission concludes Wednesday evening

Overall Commercial Setting

    Turkey, with its geographic relationship to Europe, the Middle East 
and the southern tier of the Newly Independent States, is a natural Big 
Emerging Market for U.S. business. Over the past decade, Turkey had the 
highest average GNP growth rate of any OECD country. Its large 
population, growing private sector, extensive infrastructure and 
building requirements, and a government commitment to liberalize the 
economy are expected to propel continued economic expansion into the 
21st century.
    Increased industrial and urban growth has created an overburdened 
physical infrastructure, and the continuing stress of rapid 
urbanization has generated a massive investment requirement to improve 
living conditions. Increasingly, the Turkish government has encouraged 
the local private sector and international investors to construct and 
operate urgently needed energy, transportation, and environmental 
infrastructure.
    Privatization plans present significant opportunities for U.S. 
firms. Successive Turkish governments have recognized that 
privatization generates financial resources, reduces fiscal drain, and 
improves economic efficiency. Electricity generation, transportation 
and petroleum refining and distribution are among the sectors offering 
such opportunities.

Energy, Power Equipment and Services Commercial Setting

    Recent legislative changes and the formation of a new centrist 
government may be opening the way for rapid private power development. 
This situation has led to the following developments which should 
create a strong equipment and services market in Turkey:
     The Turkish national power company held a tender for five 
new power plants with 5200 MW of capacity on a Build-Operate basis, at 
an estimated cost of $3.75 billion.
     The Turkish power company has tendered the Transfer of 
Operating Rights (TOR) for eight plants and announced the winning 
bidders on October 17. Renovation investments in these plants could 
amount to several hundred million dollars.
     The Turkish distribution monopoly has issued a TOR for 25 
local distribution systems, with awards expected shortly.
     Turkish energy officials have informed energy companies 
that they will tender seven additional new plants in 1998.
    These opportunities exist alongside important tender, contract and 
financing issues which often stand in the way of project realization. 
It is hoped that the Secretary's mission can assist in the resolution 
of such problems.

Goals for the Mission

    Reaffirm U.S. Government commitment and support for Turkey's 
program of privatization of state enterprises and heighten U.S. private 
sector participation in Turkey's economic growth.
    Increase sales of U.S. energy products and services to Turkey, 
particularly in the power equipment and services sector, by exposing 
representatives of qualified U.S. companies in the power equipment and 
services sector to currently expanding opportunities brought about by 
the construction of large new power plants, privatization of existing 
plants and distribution networks, and renovation and modernization of 
inefficient and environmentally-damaging plants. Increase sales of 
other U.S. products and services to Turkey.
    Seek resolution of outstanding bilateral commercial issues and 
advocate U.S. interests regarding specific problems and opportunities 
in certain key areas: (1) Power generation and energy; (2) economic 
reforms; and (3) compliance with trade agreements, especially those 
related to international arbitration.

Scenario for the Mission

    The Secretary's business development mission will visit the capital 
of Turkey, Ankara, and conclude in Istanbul. This mission will promote 
Turkey as a key emerging market that warrants the attention of a wide 
range of U.S. firms, from ready to export small or medium sized firms 
to large firms exploring new business opportunities.
    Mission recruitment of 8 to 10 enterprises will focus on the 
energy, power equipment and services sectors. Mission recruitment will 
also draw on commercial opportunities for goods and services resulting 
from the privatization plans of the Turkish government and from other 
opportunities for U.S. firms in Turkey.
    In his meetings with officials of the Government of Turkey, the 
Secretary will work to move our commercial dialogue forward, 
identifying issues that still impede U.S. companies' ability to do 
business in Turkey and encouraging steps to remove the obstacles. The 
timing of the trip to coincide with the inaugural meeting of the U.S.-
Turkey Business Development Council will provide an exceptional venue 
for advancing cooperation between the U.S. and Turkish private sectors.
    The program for the mission will include:

Embassy/consulate briefings on the commercial/economic environment
Meetings with Turkish Government Officials
Meetings with Turkish enterprises and trade associations
Meetings with American business executives based in Turkey

Company Participation Will Be Determined on the Basis of

    Status as U.S.-owned or U.S.-based company with capacity to deliver 
relevant equipment or services to Turkey. The goods or services 
provided must either be produced in the United States or, if not, must 
be marketed in the name of a U.S. firm and have at least 51% U.S. 
content in the value of the finished product or service. The

[[Page 66341]]

company must not be owned or controlled, indirectly or directly by a 
foreign government.
    Consistency of the company's goals with the scope and desired 
outcome of the mission as described herein.
    Past, present and prospective business in Turkey.
    Diversity of company size, type, location, demographics, and 
traditional under-representation in business.
    An applicant's partisan political activities (including political 
contributions) are irrelevant to the selection process.

Other Trip Objectives and Events

    In addition to the mission scenario described above, Secretary 
Daley will also support the inaugural meeting in Ankara of the U.S.-
Turkey Business Development Council in order to establish an improved 
bilateral business and government cooperation for expanding commercial, 
trade and investment relations. The Secretary will seek to accomplish 
several commercial policy objectives in bilateral government to 
government meetings with Turkish officials in Ankara and with the press 
and private sector in Istanbul. Our bilateral policy agenda includes 
addressing IPR issues, investment barriers to U.S. companies, insuring 
compliance with international arbitration agreements, regulatory issues 
related to the privatization of telecommunications companies, Caspian 
pipeline construction and supply issues, and investment policies 
related to ``Build-Operate'' and ``Build, Operate Transfer.''

    Dated: December 12, 1997.
Catherine Vial,
Acting Director, Energy Division/OEIM/BI/TD.
[FR Doc. 97-32966 Filed 12-17-97; 8:45 am]
BILLING CODE 3510-DR-P