[Federal Register Volume 66, Number 157 (Tuesday, August 14, 2001)]
[Notices]
[Pages 42629-42631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20542]


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DEPARTMENT OF COMMERCE

International Trade Administration


Secretarial Business Development Mission to Russia

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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SUMMARY: Secretary of Commerce, Donald L. Evans will lead a senior-
level business development mission to Moscow, Russia on October 14-16, 
2001. The focus of the mission will be to assist U.S. businesses to 
explore trade and investment opportunities resulting from the positive 
political and economic changes that have taken place in Russia. The 
delegation will include approximately 15 U.S. based senior executives 
of small, medium and large sized U.S. firms representing, but not 
limited to, the following key growth sectors: aerospace; agribusiness; 
automotive parts and equipment; energy; engineering; technology and 
service industries.

DATES: All applications must be submitted by September 5, 2001 by close 
of business.

ADDRESSES: Office of Business Liaison, Room 5062, U.S. Department of 
Commerce, Washington, DC 20230, Telephone: (202) 482-1360, Fax: (202) 
482-4054.

SUPPLEMENTARY INFORMATION:

Secretarial Business Development Mission to Russia

October 14-16, 2001

Mission Statement

I. Description of the Mission

    At the request of President Bush, Secretary of Commerce Donald L. 
Evans will lead a senior-level business development mission to Moscow, 
Russia on October 14-16, 2001. The focus of the mission will be to 
assist U.S. businesses to explore trade and investment opportunities 
resulting from the positive political and economic changes that have 
taken place in Russia. The delegation will include approximately 15 
U.S. based senior executives of small, medium and large sized U.S. 
firms representing, but not

[[Page 42630]]

limited to, the following key growth sectors: aerospace; agribusiness; 
automotive parts and equipment; energy; engineering; technology and 
service industries.
    The mission will reaffirm U.S. Government support of Russia's 
economic reforms and free market growth and seek to improve access by 
U.S. businesses to the Russian market.

II. Commercial Setting for the Mission

    The effects of the 1998 financial crisis are continuing to 
dissipate. Economic and political factors should be increasingly 
favorable for business in Russia for the near term, if the new Russian 
administration can make good on its design for reform. Favorable signs 
include economic growth likely to top 4% this year; annual inflation at 
22% in the first half of 2001 (compared to 85% at the end of 1998); a 
large balance of payments surplus, and real investment up 4.5%, the 
first increase since 1990. Moreover, on the policy front, President 
Putin's Administration has declared its intention to improve the 
business climate and seek more foreign investment, and it has produced 
an economic strategy document spelling out its plans. The Putin 
Administration has delivered the first installments on these 
commitments by recently pushing through a major tax reform and 
maintaining tight fiscal discipline for the past year.
    Nevertheless, a number of factors could limit the prospects for 
economic growth, including slow progress in restructuring the banking 
sector, failure to adopt international accounting and business 
standards, insufficient protection of intellectual property rights, and 
the lack of enforcement of court judgments and arbitral awards.
    On balance, however, the 2001-2002 period could see an improved 
climate for U.S. business interests in Russia. In the wake of the 
economic crisis, U.S. exports fell by about half to $2.1 billion in 
1999, but recovered moderately in 2000 to $2.3 billion, and continue to 
show growth in 2001. The pace of U.S. investments recovered from the 
fall of 1999 to $2.92 billion, 30% above 1998 and nearly equaling 1997. 
Cumulative foreign direct investment into Russia amounted to $14.5 
billion in the beginning of 2001, with the United States accounting for 
$5.5 billion.

III. Goals for the Mission

    The mission aims to further both U.S. commercial policy objectives 
and advance specific U.S. business interests. The mission will:
     Assess the commercial climate and investment opportunities 
in Russia
     Advance specific U.S. business interests of the mission 
members by introducing them to key host government decision-making 
officials and to potential business partners.
     Assist new-to-market firms to gain a foothold in Russia 
and increase the visibility of U.S. companies already operating in 
Russia in this very competitive market.
     Support U.S. Government efforts to eliminate market access 
problems encountered by U.S. firms in Russia.
     Encourage continued progress in economic reforms in 
Russia.
     Interface with the private sector led Russian-American 
Business Dialogue.

IV. Scenario for the Mission

    The Business Development Mission will provide participants with 
exposure to high level contacts and access to the Russian market. 
American Embassy officials and local U.S. businesses will provide a 
detailed briefing on the economic, commercial and political climate, 
and current trade and investment opportunities. Meetings will be 
arranged with appropriate government ministers and other senior level 
government officials. In addition, private meetings will be scheduled 
with potential business partners. Representational events will also be 
organized to provide mission participants with opportunities to meet 
Russian business and government representatives as well as U.S. 
business people living and working in Russia.
    Secretary Evans will meet with his trade counterparts and other 
senior government officials to encourage free market reforms beneficial 
to the U.S. private sector. The Secretary will also urge host 
government officials to eliminate market access problems encountered by 
American firms and to take steps to liberalize Russian trade and 
investment regimes. Secretary Evans and mission participants will meet 
with members of the new Russian-American Business Dialogue. Organized 
by the private sector in both countries, the Dialogue is a vehicle to 
expand bilateral business opportunities and to introduce new 
participants into U.S.-Russian trade and investment relations. The 
Secretary will also meet with resident American business 
representatives.
    The Department of Commerce U.S. Commercial Service will provide 
logistical support for these activities.

V. Criteria for Participant Selection

    The recruitment and selection of private sector participants for 
this mission will be conducted according to the ``Statement of Policy 
Governing Department of Commerce-Overseas Trade Missions'' established 
in March 1997. Approximately 15 companies will be selected for the 
mission. Companies will be selected according to the criteria set out 
below.

Eligibility

    Participating companies must be incorporated in the United States. 
A company is eligible to participate if the products and/or services 
that it will promote (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.

Selection Criteria

    Companies will be selected for participation in the mission on the 
basis of:
     Consistency of company's goals with the scope and desired 
outcome of the mission;
     Relevance of a company's business and product line to the 
identified growth sectors;
     Senior representative of the designated company;
     Past, present, or prospective international business 
activity;
     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.

VI. Time Frame for Applications

    Applications for the Russia Business Development mission will be 
made available on or about August 13, 2001. The fee to participate in 
this mission has not yet been determined, but will be approximately 
$5,000-$10,000. The fees will not cover travel or lodging expenses, 
which will be the responsibility of each participant. For additional 
information on the trade mission or to obtain an application, contact 
the Office of Business Liaison at 202-482-1360. Applications should be 
submitted to the Office of Business Liaison by September 5, 2001, 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.
    Contact: Office of Business Liaison, Room 5062, U.S. Department of 
Commerce Washington, D.C. 20230,

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Telephone: (202) 482-1360, Fax: (202) 482-4054.

    Dated:August 10, 2001.
Jerry K. Mitchell,
Deputy Director General, the Commercial Service.
[FR Doc. 01-20542 Filed 8-13-01; 8:45 am]
BILLING CODE 3510-FP-P