[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