[Federal Register Volume 64, Number 24 (Friday, February 5, 1999)]
[Notices]
[Pages 5756-5758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2914]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 64, No. 24 / Friday, February 5, 1999 / 
Notices  

[[Page 5756]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service


Notice of FY 1999 Emerging Markets Program and Solicitation of 
Private Sector Proposals

AGENCY: Foreign Agricultural Service, USDA.

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) 1999 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 U.S. private agricultural or 
agribusiness organization, with certain restrictions as indicated 
below. Under the Act, up to $10 million are available to fund the 
Program. All agricultural products except tobacco are eligible for 
consideration. This notice complements a notice published February 1 
announcing the Unified Export Strategy (UES) of FAS.
    FAS published on February 1, a Federal Register notice on its FY 
1999 UES. The UES will provide a means for interested applicants to 
apply for Program funds. Some applicants may wish to use the UES 
process and apply under that announcement or to apply under this 
announcement. The Program will consider all requests whether based on 
this announcement or the UES announcement. However, the deadline for 
all applications to the Program is the close of business Friday, March 
26, without exception.

FOR FURTHER INFORMATION CONTACT: To ensure that proposals submitted to 
the Program under this announcement qualify for funding, it is strongly 
recommended that any organization considering applying to the Program 
for FY 1999 funding assistance first obtain a copy of the 1999 Program 
Guidelines. The Guidelines contain additional information, including 
eligibility for funding under the Program, 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, D.C. 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.

SUPPLEMENTARY INFORMATION:
    Program Definitions: The purpose of the Program is to assist U.S. 
organizations, public and private, to improve market access and to 
develop and promote U.S. agricultural products and/or processes 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 viable and 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 worldwide, proposals will be considered which focus 
on those countries with (1) per capita income less than $9,655 (the 
ceiling on upper middle income economies as determined by the World 
Bank [World Development Indicators 1998]); and (2) population greater 
than 1 million (may encompass suitable regional groupings, e.g., the 
islands of the Caribbean Basin).
    Program Priorities and Determining Factors: The underlying premise 
of the 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 marketing opportunities where there are 
risks that the private sector would not normally undertake alone, 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 Facilities Guarantee Program, the Suppliers' Guarantee Program, the 
Market Access Program (MAP), or the Foreign Market Development Program 
(FMD).
    In general, priority consideration will be given to those proposals 
that identify and seek to address specific problems and/or constraints 
in rural business systems and/or food and agribusiness systems in 
emerging markets through technical assistance to expand or maintain 
U.S. agricultural exports.
    The following will be used to determine the suitability of projects 
for funding by the Program:
    1. Low U.S. market share and significant market potential.
     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

[[Page 5757]]

political or financial situation in a country?
    In order to qualify for 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 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.
    Subject areas for technical assistance activities which promote 
markets for U.S. agricultural product exports which will be given 
priority consideration for funding under the Program are:

--Projects and activities which use technical assistance designed 
specifically to improve market access in emerging foreign markets. 
Examples: activities intended to mitigate the impact of sudden 
political events or economic and currency crises in order to maintain 
U.S. market share; responses to time-sensitive market opportunities;
--Marketing and distribution of more value-added products, including 
new products or uses. Examples: food service development; market 
research on potential for consumer-ready foods or new uses of a 
product;
--Studies of food distribution channels in emerging markets, including 
infrastructural impediments to U.S. exports; such studies may include 
cross-commodity activities which focus on problems, e.g., distribution, 
which affect more than one industry. Examples: grain storage handling 
and inventory systems development; distribution infrastructure 
development;
--Projects that specifically address various constraints to U.S. 
exports, including sanitary and phytosanitary issues and other non-
tariff barriers. Examples: seminars on U.S. food safety standards and 
regulations; assessing and addressing pest and disease problems that 
inhibit U.S. product exports;
--Assessments and follow up activities designed to improve country-wide 
food and business systems, to reduce trade barriers, to increase 
prospects for U.S. trade and investment in emerging markets, and to 
determine the potential use for general export credit guarantees, 
including especially the Facilities Guarantee Program, for commodities, 
facilities and services. Examples: product needs assessments and market 
analysis; assessments for using facilities credits to address 
infrastructural impediments;
--Projects that help foreign governments to collect and use market 
information and to develop free trade policies that benefit American 
exporters as well as the target country or countries. Examples: 
agricultural statistical analysis; development of market information 
systems; policy analysis;
--Short-term training in broad aspects of agriculture and agribusiness 
trade that will benefit U.S. exporters, including seminars and training 
at trade shows designed to expand the potential for U.S. agricultural 
exports by focusing on the trading system. Examples: marketing 
seminars; transportation seminars; training keyed to opening new or 
expanding existing markets.

    Ineligible activities include in-store promotions, restaurant 
promotions, branded product promotions (including labeling), 
advertising for any of these activities and for the preparation and 
printing of brochures, flyers, posters, etc. Administrative and 
operational expenses for trade shows are also ineligible. There are 
other, related items precluded from Program funding detailed in the FY 
1999 Program Guidelines.
    All agricultural products except tobacco, but including multi-
commodities, are eligible for consideration.
    Additional criteria to be considered in approving projects are 
outlined 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 Program funds, but which 
also represent the broader interests of the industry which that 
organization represents.
    The limited funds of the Program and the range of emerging markets 
worldwide 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 of one year or less. Funding is normally 
made available on a cost-reimbursable basis. The EMO may consider 
proposals on an accelerated basis depending on the technical and time 
requirements of the proposal. These would be covered through the 
Technical Issues Resolution Fund, and the Quick Response Market Fund. 
For details concerning these funds, see the Program Guidelines.
    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 evaluations.
    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 Program, including cost-sharing for the 
portion of the project for which government funding is requested.
    Project Reports: Results of all projects supported financially by 
the Program must be reported in a performance report to EMO. Because 
public funds are used to support the project, these reports will be 
made available to the public by the EMO.
    Eligible Organizations, Activities: Any United States agricultural 
and/or agribusiness organization, university, or state department of 
agriculture, is eligible to participate in the Program. 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.
    U.S. market development cooperators may seek funding to address 
priority, market-specific issues and to undertake activities not 
already serviced by or

[[Page 5758]]

unsuitable for funding under other FAS marketing programs, e.g., FMD 
and MAP.
    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, 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 as a result of the proposed project; supporting 
market analysis of the target market(s)--brief economic analysis for 
each commodity and country, including current market conditions and 
relevant trade data--and existing percentage of U.S. export market 
share, and the basis or source(s) for this data; 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); and Federal tax ID number of the responsible 
organization. Qualifications of applicant(s) should be included, as an 
attachment. Applications must be submitted in both printed form and on 
computer diskette, preferably using Word or WordPerfect, or a 
compatible format.

    Signed at Washington, D.C. on February 2, 1999.
Tim Galvin,
Administrator, Foreign Agricultural Service.
[FR Doc. 99-2914 Filed 2-4-99; 8:45 am]
BILLING CODE 3410-10-P