[Federal Register Volume 63, Number 33 (Thursday, February 19, 1998)]
[Notices]
[Pages 8424-8426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4169]


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DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service


Notice of FY 1998 Emerging Markets Program and Solicitation of 
Private Sector Proposals

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Notice of FY 1998 emerging markets program and solicitation of 
private sector proposals.

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SUMMARY: The Foreign Agricultural Service (FAS) invites proposals for 
using technical assistance to promote the export of, and improve the 
market access for, U.S. agricultural products to emerging markets in 
fiscal year (FY) 1998 under the Emerging Markets Program (the Program). 
The Program is authorized by the Food, Agriculture, Conservation, and 
Trade Act of 1990, as amended (the Act). Proposals will be considered 
under this announcement from any private agricultural or agribusiness 
organization, with certain restrictions as indicated below. Program 
funds available for FY 1998 under this notice are approximately $5 
million. All agricultural products except tobacco are eligible for 
consideration.

FOR FURTHER INFORMATION: It is strongly recommended that any 
organization considering applying to the Program for FY 1998 funding 
assistance obtain a copy of the 1998 Program Guidelines. The Guidelines 
contain additional information, including details of project budgets 
and certain funding limitations that must be taken into account in the 
preparation of proposals. Requests for Program Guidelines and 
additional information may be obtained from and applications submitted 
to: Emerging Markets Office, Foreign Agricultural Service, Room 6506 
South Building, U.S. Department of Agriculture, Washington, DC 20250-
1032, Fax: (202) 690-4369. The Guidelines are also available on the FAS 
Home Page on the Internet: http:/www.fas.usda.gov/excredits/em-markets/
em-markets.html.

Program Definitions

    The purpose of Program is to assist U.S. organizations, public and 
private, to improve market access, development and promotion of U.S. 
agricultural products in low to middle income countries that offer 
promise of emerging market opportunities in the near- to medium-term. 
This is to be accomplished by providing U.S. technical assistance 
through projects and activities in those emerging markets.
    The Act defines an emerging market as any country that the 
Secretary of Agriculture determines:
    (1) Is taking steps toward a market-oriented economy through the 
food, agriculture, or rural business sectors of the economy of the 
country; and
    (2) has the potential to provide a significant market for United 
States agricultural commodities or products of United States 
agricultural commodities.
    Because funds are limited and the range of potential emerging 
market countries is world wide, priority is given to proposals which 
focus on those countries with (1) per capita income less than $8,355 
(the food aid per capital income cut-off figure of OECD's Development 
Assistance Committee); and (2) population greater than 1 million.

Priorities and Determining Factors

    The underlying premise of the Emerging Markets Program is that 
there are distinctive characteristics of emerging agricultural markets 
that necessitate or benefit significantly from U.S. governmental 
assistance before the private sector moves to develop these markets 
through normal corporate or trade promotional activities. The emphasis 
is on market access opportunities, with funding provided for successful 
activities on a project-by-project basis. The Program complements the 
efforts of other FAS marketing programs. Once a market access issue has 
been addressed by this Program, further market development activities 
may be considered under other programs such as GSM-102 or GSM-103 
credit guarantee programs, the Market Access Program (MAP), or the 
Foreign Market Development Program (FMD). Ineligible activities include 
in-store promotions, restaurant promotions, advertising, and branded 
promotions.
    For countries deemed ``emerging markets,'' the following criteria 
will be used to determine the suitability of projects for funding by 
the Emerging Markets Program:
    1. Low U.S. market share and significant market potential.

[[Page 8425]]

     Is there a significant lag in U.S. market share of a 
specific commodity in a given country or countries?
     Is there an identifiable obstacle or competitive 
disadvantage facing U.S. exporters (e.g., competitor financing, 
subsidy, competitor market development activity) or systemic obstacle 
to imports of U.S. products (e.g., inadequate distribution, 
infrastructure impediments, insufficient information, lack of financing 
options or resources)?
     What is the potential of a project to generate a 
significant increase in U.S. agricultural exports in the near- to 
medium-term? (Estimates or projections of trade benefits to commodity 
exports, and the basis for evaluating such, must be included in 
proposals submitted to the Program.)
    2. Recent change in a market.
     Is there, for example, a change in a sanitary or 
phytosanitary trade barrier; a change in an import regime or the 
lifting of a trade embargo; a shift in the political or financial 
situation in a country?
    In order to qualify for Emerging Markets Program funding, proposals 
must also include cost-sharing: the willingness of private agribusiness 
to commit its own funds along with those of the Program to seek export 
business in an emerging market. No proposal will be considered without 
the element of cost-sharing. The Emerging Markets Program is intended 
to complement, not supplant, the efforts of the U.S. private sector. 
The percentage of private funding proposed for a project will therefore 
be a critical factor in determining which proposals are funded under 
the Program. While no minimum or maximum is specified, the absolute 
amount of private sector funding proposed may also affect the decision 
to fund a proposal. The type of cost-sharing provided by private 
industry is also not specified; it may be professional time of staff 
assigned to the project or actual cash invested in the proposed 
project. However, proposals in which private industry is willing to 
commit actual funds, rather than contributing such in-kind items as 
staff resources, will be given priority consideration.
    Additional criteria to be considered in approving projects are 
outlines under ``Applications'' below.

Funding of Proposals

    Funding for technical assistance projects is made on the basis of 
proposals to the Emerging Markets Office. In general, each proposal 
submitted in response to this announcement will compete against all 
such proposals received under the same announcement. Proposals will be 
judged not only on their ability to provide benefits to the 
organization receiving Emerging Markets Program funds, but which also 
represent the broader interests of the industry which that organization 
represents.
    The limited funds of the Emerging Markets Program and the range of 
emerging markets world wide in which the funds may be used preclude EMO 
from approving large budgets for single projects. The Program is 
intended to provide appropriate USDA assistance to projects which also 
have a significant amount of financial contributions from other 
sources, especially U.S. private industry. There is no minimum or 
maximum amount set for EMO-funded projects; however, most are funded at 
the level of less than $500,000 and for a duration on one year or less. 
Funding is normally made available on a cost-reimbursable basis.
    Multi-year Proposals. These may be considered in the context of a 
strategic plan and detailed plan of implementation. Funding in such 
cases is normally provided one year at a time, with commitments beyond 
the first year subject to interim evaluation.
    Projects Already in Progress. Funding may be considered for 
technical assistance projects that have already begun with the support 
and financial assistance of a private entity, and for which government 
funding for continuation of the project is requested. Such proposals 
must meet the criteria of the Emerging Markets Program, including cost-
sharing for the portion of the project for which government funding is 
requested.
    (Exception. In addition to the approximately $5 million made 
available through this announcement for competitive proposals, some 
project activities may qualify for funding under one of two separate 
funds administered by the Emerging Markets Office: the Technical Issues 
Resolution Fund, and the Quick Response Market Fund. Because of the 
time-sensitive nature of these funds, proposals funded from these 
sources may be approved and funded at any time, provided the basic 
requirements of the Emerging Markets program and the specific 
prerequisites of the funds are met in each case. For details concerning 
these funds, see the Program Guidelines.)

Project Reports

    Results of all projects supported financially by the Program must 
be reported in a performance report to the Emerging Markets Office. 
Because public funds are used to support the project, these reports 
will be made available to the public by the Emerging Markets Office.

Eligible Organizations, Activities

    Any United States agricultural and/or agribusiness organization, 
university, or state department of agriculture, is eligible to 
participate in the Program, with certain limitations. Priority will be 
given to those proposals that include significant support and 
involvement by private industry.
    Proposals from research and consulting organizations will be 
considered if they provide evidence of substantial participation by 
U.S. industry.
    Under the Program, U.S. organizations may seek funding to address 
market-specific issues and undertake activities not suitable for 
funding under FAS market promotion programs, e.g., the Foreign Market 
Development (FMD) Program and the Market Access Program (MAP), 
including the following:
     Responding to new or changed market opportunities 
requiring a rapid response (through the Quick Response Marketing Fund);
     Addressing food safety and regulation issues (through the 
Technical Issues Resolution Fund);
     Conducting sectorial assessments for trade and investment, 
orientation visits, feasibility studies, or market research for markets 
not already serviced by other FAS marketing programs, or for products 
for niche markets even though serviced by other FAS marketing programs;
     Undertaking cross-commodity activities focusing on 
problems, e.g., distribution, which affect more than one industry.

DATES: Proposals for FY 1998 funding must be received in the Emerging 
Markets Office not later than Monday, April 20, 1998. Funding decisions 
are anticipated within approximately 90 days of this deadline. No 
proposal received after the April 20 deadline will be considered, 
regardless of the circumstances.

Applications

    To assist FAS in making determinations under the Program, FAS 
recommends that all applications contain complete information about the 
proposed project and that the applications not be longer than ten (10) 
pages. The recommended information includes: name of person/
organization submitting proposal; date of proposal; organization 
affiliation and address; telephone and fax numbers; full title of 
proposal; precis of the proposal,

[[Page 8426]]

including objectives, proposed activities, benefits to U.S. 
agricultural exports, target country/countries for proposed activities, 
projected starting date for project, and funding amount requested; 
summary and detailed description of proposed project; statement of 
problem (specific trade constraint) to be addressed through the 
proposed project; benefits to U.S. agricultural exports; agricultural 
trade data for target country/countries, including existing percentage 
of U.S. export market share; information on whether similar activities 
are or have previously been funded in target country/countries (e.g., 
under MAP and/or FMD programs); a clearly stated explanation as to why 
participating organization(s) are unlikely to carry out activities 
without Federal financial assistance; time line(s) for project 
implementation; detailed project budget, including other sources of 
funding for the project and contributions from participating 
organizations (additional requirements are contained in the Program 
Guidelines); Federal tax ID number of the responsible organization. 
Qualifications of applicant(s) should be included, as an attachment.

    Signed at Washington, D.C., on February 11, 1998.
Lon Hatamiya,
Administrator, Foreign Agricultural Service.
[FR Doc. 98-4169 Filed 2-18-98; 8:45 am]
BILLING CODE 3410-10-M