[Federal Register Volume 65, Number 16 (Tuesday, January 25, 2000)]
[Notices]
[Pages 3937-3939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1704]


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DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service


Fiscal Year 2000 Emerging Markets Program and Solicitation of 
Private Sector Proposals

AGENCY:  Foreign Agricultural Service, USDA.

ACTION:  Notice.

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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) 2000 under the Emerging Markets Program (the Program).

DEADLINE:  All proposals must be received by 5:00 p.m. Eastern Standard 
Time, March 13, 2000.

FOR FURTHER INFORMATION CONTACT:  Requests for program guidelines and 
additional information may be obtained from, and proposals 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, E-mail: [email protected]. It is strongly 
recommended that any U.S. organization considering applying to the 
Program for FY 2000 funding assistance first obtain a copy of the 2000 
Emerging Markets Program Guidelines. The guidelines are also available 
on the FAS Home Page on the Internet: http:/www.fas.usda.gov/excredits/em-markets/em-markets.html.
    The FAS issued a Federal Register notice on January 3, 2000, 
announcing the availability of funding for the Market Access Program 
(MAP) and the Foreign Market Development (FMD) (Cooperator) Program, 
and encouraging applicants to these programs to use the Unified Export 
Strategy (UES) format. Some applicants may also wish to use the UES 
format in order to apply to the Emerging Markets Program.

SUPPLEMENTARY INFORMATION:

Introduction

    The Program is authorized by section 1542(d)(1)(D) of the Food, 
Agriculture, Conservation, and Trade Act of 1990. Up to $10 million is 
available to fund the Program each fiscal year. 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 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.

Program Priorities

    Because funds are limited and the range of potential emerging 
market countries is worldwide, proposals will be considered which focus 
on those countries which meet the above definition and have (1) a per 
capita income less than $9,360 (the ceiling on upper middle income 
economies as determined by the World Bank [World Development Indicators 
1999]; and (2) a population greater than 1 million. These categories 
may encompass suitable regional groupings, e.g., the islands of the 
Caribbean Basin. (Consult the 2000 Emerging Markets Program Guidelines 
available from the contact and address identified above for further 
information.)
    The underlying premise of the Program is that there are distinctive 
characteristics of emerging agricultural markets that necessitate or 
benefit significantly from technical assistance through the public 
sector before the private sector moves to develop these markets through 
normal corporate or

[[Page 3938]]

trade promotional activities. The emphasis of the program is on 
funding, on a project-by-project basis, marketing opportunities which 
involve risks that the private sector would not normally undertake 
alone. 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 
MAP, the FMD Programs, or the section 108 foreign currency program.
    Any United States agricultural or agribusiness organization, 
university, or state department of agriculture, is eligible to 
participate in the Program. Proposals from research and consulting 
organizations will be considered if they provide evidence of 
substantial participation by U.S. industry.
    In general, priority consideration will be given to those proposals 
that identify and seek to address specific problems or constraints in 
rural business systems or food and agribusiness systems in emerging 
markets through technical assistance to expand or maintain U.S. 
agricultural exports.
    The following marketing criteria 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 political or financial 
situation in a country?

Content of Proposal

    CCC will also review the following information, which should be 
included in the proposal, in considering the suitability of projects. 
(1) Cost-sharing: Information indicating the willingness of private 
agribusiness to commit its own funds along with those of the Program to 
seek export business in an emerging market. 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. Cost-sharing provided by private industry 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. (2) Market Analysis and Statement of Specific Benefit(s) 
to U.S. Exports: A brief underlying analysis of the target market which 
supports the objectives of the proposed project and the benefits that 
can be expected to accrue to U.S. commodity exports as a result of 
successful completion of the project. (3) Justification for Federal 
Funding: A clearly stated argument supporting the need for Program 
funding.
    For additional details that should be included in each application, 
see ``Submissions'' below.

Priority Considerations

    The following subject areas for technical assistance activities to 
promote markets for U.S. agricultural product exports will be given 
priority consideration for funding under the Program:

--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: retail training; 
marketing seminars; transportation seminars; training keyed to opening 
new or expanding existing markets

    .Retail Training: U.S. organizations which may be interested in 
applying for funding assistance to support retail training are urged to 
review a data base of FAS-supported activities on this topic so to 
avoid possible duplication and/or overlap of training in similar 
markets or on similar commodities. The data base will be available on 
the FAS Internet web site by mid-January 2000.
    Projects which promote markets for any agricultural products, 
except tobacco, are eligible for consideration. Projects which include 
multiple commodities are also eligible.

[[Page 3939]]

    Ineligible activities include in-store promotions; restaurant 
promotions; branded product promotions (including labeling and 
supplementing normal company sales activities intended to increase 
awareness and stimulate sales of branded products); advertising; 
administrative and operational expenses for trade shows; and for the 
preparation and printing of brochures, flyers, posters, etc. except in 
connection with specific technical assistance activities such as 
training seminars.

Funding of Proposals

    Funding for technical assistance projects is made on the basis of 
proposals to the Emerging Markets Office (EMO). 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 1 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 1 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. Note: While this announcement 
solicits proposals from private U.S. agricultural organizations for 
consideration and funding on a competitive basis, the EMO may also 
consider proposals on an accelerated basis depending upon the technical 
and time requirements of the proposal. If approved, such proposals 
would be covered through the Technical Issues Resolution Fund or the 
Quick Response Market Fund. For details concerning these specialty 
funds, see the program guidelines.

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.

Submissions

    To assist FAS in making determinations under the Program, FAS 
recommends that all proposals contain complete information about the 
proposed project and that the proposals not be longer than 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, including specific performance 
measures; 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); Federal tax ID number of the 
responsible organization. Qualifications of applicant(s) should be 
included, as an attachment.
    Proposals must be submitted in both printed form and on computer 
diskette, using WordPerfect or Word or compatible format.

    Signed at Washington, D.C. on January 14, 2000.
Timothy J. Galvin,
Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 00-1704 Filed 1-24-00; 8:45 am]
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