[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3739-3742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1435]


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DEPARTMENT OF COMMERCE

International Trade Administration


Executive-led Aerospace and Defense Industry Trade Mission to 
Turkey--Notification

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (CS) is organizing 
a U.S.--Turkey Aerospace and Defense Industry Trade Mission to Ankara 
and Istanbul December 3-7, 2012. This mission will be led by a Senior 
Commerce Department official. The mission's goal is to introduce a 
variety of U.S. aerospace and defense industry manufacturers and 
service providers to end-users and prospective partners whose needs and 
capabilities are targeted to each U.S. participant's strengths. 
Participating in an official U.S. industry delegation, rather than 
traveling to Turkey on their own, will enhance the companies' ability 
to secure meetings in Ankara and Istanbul. Trade

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mission participants will have the opportunity to interact extensively 
with CS Turkey officers and specialists as well as State Department and 
U.S. Office of Defense Cooperation personnel to discuss industry 
developments, opportunities, and sales strategies.
    During the mission, U.S. delegation members will learn about 
policies and opportunities in Turkey's aerospace and defense industry. 
Most industry manufacturers and component suppliers, distributors and 
agents are based in Ankara or Istanbul, offering the opportunity for 
good matchmaking and networking. In addition to government briefings, 
matchmaking and networking opportunities, the trade mission will 
include three site visits to company facilities and production centers 
in both Ankara and Istanbul.

Commercial Setting

    Turkey is at the crossroads of Europe, between the Middle East and 
Asia and an emerging aerospace and defense hub for markets in Europe, 
the Caucasus, and the Middle East and North Africa (MENA). With a 
population of over 70 million people, it has the world's sixth largest 
army with 720,000 soldiers. This is the second largest army in NATO 
after the United States. The Turkish Air Force (TAF) is the world's 
third largest operator of the F-16, following the United States and 
Israel.
    Turkey's defense industry is financed primarily by the national 
budget and Defense Industry Support Fund, and partially by military 
loans. In Fiscal Year 2011 over $11 billion was allocated to the 
Ministry of Defense (MOD) spending, 47.5 percent of which was allocated 
to procurement of goods and services. There is an emphasis on R&D 
capabilities and the advancement of the national industrial capability. 
Joint production and technological cooperation are preferred to foreign 
military sales (FMS) and off the shelf procurements.
    The Turkish market is particularly promising for U.S. suppliers 
seeking joint-venture opportunities. There are increased opportunities 
for U.S. small- and medium-sized enterprises within a Turkish 
partnership framework to enable the modernization of the Turkish Armed 
Forces. Within the next 25 years, a large portion of the Turkish Armed 
Forces `combat weapons and equipment will need to be replaced or 
modernized.
    A focal point of the trade mission will be the Turkish Armed Forces 
Foundation (TuAFF). Created after the 1974 US embargo over the Cyprus 
issue, the TuAFF enables a defense base for Turkey that creates 
indigenous or partnered projects, ensuring an independence from a U.S.-
only defense environment. It is critical therefore to work with Turkish 
partners and with the TuAFF where U.S. projects are concerned. The 
Commercial Service and the Office of Defense Cooperation can assist 
with appropriate commercial access to assist U.S. companies 
participating in this partnering endeavor.
    The TuAFF is managed by a Board of Trustees consisting of the 
Minister of National Defense, the Deputy Chief of the General Staff, 
the Undersecretary of the Ministry of National Defense and the Minister 
of National Defense Undersecretary of Defense Industry.
    Opportunities with the major TuAFF affiliates and subsidiaries will 
be a primary point of interest for mission participants. The major 
TuAFF affiliates and subsidiaries are:
     ASELSAN: Communication and information technologies, 
radars, electronic warfare and intelligence systems and defense systems 
technologies
     Turkish Aerospace Industries (TAI): Aero structures and 
space, integrated helicopter systems, integrated aircraft systems, 
training and consultancy
     HAVELSAN: Software and systems related to C4ISR, naval 
combat systems, air defense systems, management information systems, 
simulation and training systems, homeland security systems and energy 
management systems
     ROKETSAN: Rocket and missile technologies--structural, 
thermal, mechanical design; internal ballistics; guidance-control, 
weapon systems, aerodynamic, composite structures, propellant systems 
and warhead technologies
     ISBIR: Alternators, frequency convertors, gensets
     ASPILSAN: battery pack and Ni-Cd aircraft batteries
     Tusas Engine Industries (TEI): Parts and module 
production, engine assembly and test maintenance, repair and overhaul 
services, engine design and product development
     DITAS: Ship owner/ship management, brokering/chartering, 
ship and tugboat management, vetting and ship vetting
     MIKES: Electronic warfare, radar warning receivers, 
electronic counter measure systems, chaff flare dispensing systems, 
electronic support measures, software solutions, avionics

TuAFF organizes the biannual International Defense Industry Fair (IDEF) 
in Istanbul. IDEF is certified by the U.S. Department of Commerce as a 
platform vehicle for U.S. firms to enter and expand sales in the 
Turkish defense market. As the premier defense exhibition for Turkey 
and the region, in 2011 IDEF hosted 575 exhibitors from 44 countries 
and over 40,000 visitors. The U.S. Department of Commerce, Commercial 
Service, supported 21 U.S. participants and the U.S. Pavilion at IDEF 
2011.

Civil Aviation

    Turkey, a large country with a growing economy, is the size of 
Texas and is strategically located three hours by plane to 1.5 billion 
people and $23 trillion of GDP as it is surrounded by developed 
(Europe) and emerging (Russia, Caucasus and MENA. As a result of 
Turkey's growing economy and population, Turks have come to rely on 
domestic and international air service increasingly over the past 
years. International and domestic passenger numbers in 2009 in Turkey 
totaled 85 million. An important growth factor for the Turkish aviation 
industry is the growth of the overall economy- expected at 7-8 percent 
for 2010. This economic growth has given Turks more money to travel. 
Turkey's per capita gross national income more than tripled between 
2002 and 2009, to $8,730, according to World Bank figures. DHMI, the 
State Airport Authority is under the umbrella of the Ministry of 
Transportation. DHMI is responsible and has the final authority for 
licensing, tendering, building and operating of airports, air traffic 
management and control, airport management, ground services, airlines 
and air safety. Presently, there are 44 commercial airports in 
operation in Turkey. With a work force of more than 7,500 employees, 
DHMI is the largest Turkish procurement authority with respect to air 
traffic control (ATC) equipment, navigation aids, airside airport 
infrastructure, and airport security systems.
    DHMI expects to procure safety and security equipment, ground 
control equipment, perimeter security, communications, runway and 
landing lighting as well as automated landing systems. Specifically 
mentioned are bomb detection equipment by nuclear and chemical 
detection equipment, x-ray machine upgrades, next generation door 
detectors, fingerprint access to restricted areas and airport perimeter 
security.
    Turkey's aerospace industry has experienced rapid growth over the 
past decade. In 2010, Turkey's aerospace import market size was $4.2 
billion, a compound annual growth rate of 12.5 percent since 2000. In 
2010, Turkey's aerospace imports from the U.S. were

[[Page 3741]]

$2.7 billion (64 percent of the market). U.S. aerospace companies have 
a strong presence in Turkey that is expected to continue.
    Turkey's strategic location ensures unrivaled advantages in 
airline, maintenance, repair and overhaul (MRO), cargo and air taxi 
services in the region. With the addition of Ordu and Mersin airports, 
the number of civil airports in Turkey grew to 46 in 2010. Istanbul is 
considering adding a 3rd international airport. In 2009, 19 airlines 
(including 3 cargo airlines) and 61 air taxi operation companies were 
active (more recent data is not available). The increase of regional 
airlines will ensure further growth in the industry. A good example of 
this growth is that in 2002, Turkish Airlines (then a monopoly) flew to 
25 locations from two hubs, total annual domestic passenger traffic of 
approximately 8.7 million. Today, over 16 passenger airlines carry 41 
million domestic passengers and 44 million international passengers 
from 7 hubs. These figures show the diversification and growth of the 
civil aviation market. This rapid growth presents immediate and long-
term opportunities for U.S. firms.
    Since 2002, there has been a 372 percent increase in domestic 
passenger traffic, a 77 percent increase in international passenger 
traffic and a 153 percent increase in total (domestic & international) 
passenger traffic. There are a total of 329 private airline companies 
operating in the Turkish aerospace industry, 17 of which are Turkish. 
These companies are creating demand for aircraft parts (new and used) 
as well as safety equipment, training and management. An example of 
airline growth in Turkey is Turkish Airlines. Turkish Airlines has 
grown 15-20 percent on average over the past 10 years. Currently 
Turkish Airlines is the 4th largest airline in Europe with 142 aircraft 
(including 64 new aircraft orders), 159 destinations (38 domestic and + 
121 international) and was named the Best Airline in Europe at the 2011 
Paris Air Show World Airline Awards.

Mission Goals

    The goal of the U.S.-Turkey Aerospace and Defense Industry Trade 
Mission is to (1) introduce U.S. companies to Turkish business partners 
and industry representatives; and (2) introduce U.S. companies to 
Turkish government officials to learn about various U.S.-Turkish and 
Turkish aerospace and defense program opportunities.

Mission Scenario

    The trade mission will visit Ankara and Istanbul, Turkey, December 
3-7, 2012.
    Trade mission members will meet with officials from the Ministry of 
Defense (UnderSecretary of Defense Industries/SSM), DHMI, and Turkish 
Armed Forces Foundation, and will take part in business matchmaking 
appointments with private-sector entities. In addition, participants 
will attend an Embassy briefing and networking events with U.S. and 
Turkish government officials and various Turkish companies, participate 
in at least three site visits and multiple one-on-one business 
matchmaking appointments.
    Matchmaking efforts will involve relevant networking groups such 
as: the Defense Industry Manufacturers Association (SASAD), Turkey's 
primary association for producers of defense systems and equipment, and 
the two American Chambers of Commerce in Turkey. U.S. participants will 
be counseled before and after the mission by U.S. Export Assistance 
Center trade specialists, primarily by members of the Aerospace and 
Defense Technology Team. Participation in the mission will include the 
following:
     Pre-travel briefings/webinar on subjects ranging from 
business practices in Turkey to security;
     Pre-scheduled meetings with potential partners, 
distributors, end users, and local industry contacts in Ankara;
     Transportation to/from the hotel to meetings for the 
duration of the mission;
     Meetings with key U.S. and Turkish government officials; 
and
     Participation in industry networking receptions.

Proposed Timetable

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Monday, December 3...........   Trade Mission Participants
                                Arrive in Ankara.
                                Dinner with CS/ODC/PMA Staff.
Tuesday, December 4..........   Welcome briefing by U.S. Embassy
                                country team.
                                Presentations by selected trade
                                mission participants to UnderSecretary
                                of Defense Industries (SSM) Murad Bayar
                                (TBC).
                                Lunch hosted by SASAD,
                                Association of Turkish Defense Industry
                                Companies (TBC).
                                One-on-One business matchmaking
                                appointments.
                                Networking Reception with
                                members of Ankara Business Community at
                                Ambassador's Residence (TBC).
Wednesday, December 5........   One-on-one matchmaking
                                appointments.
                                Lunch and Site visit at Turkish
                                Aerospace Industries (TAI) (TBC).
                                Fly to Istanbul.
Thursday, December 6.........   One-on-one business matchmaking
                                appointments.
                                Lunch hosted by American
                                Business Forum in Turkey (TBC).
                                Site visit (Turkish Technic MRO
                                with Aerospace companies/Istanbul
                                shipyards for Defense companies) (TBC).
                                Late afternoon/evening
                                networking event hosted by TABA (TBC).
Friday, December 7...........   Trade Mission Participants
                                Depart.
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Participation Requirements

    All parties interested in participating in the Executive-led U.S.-
Turkey Aerospace/Defense Industry Trade Mission must complete and 
submit an application for consideration by the Department of Commerce. 
All applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. 
Recruitment for the mission is open on a rolling basis starting January 
16, 2012 and will be open until we have reached our limit of 15-20 
qualified U.S. companies.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee will be $4,850.00 for large 
firms and $3,435.00 for a small or medium-sized enterprise (SME),\*\

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which includes one principal representative. The fee for each 
additional firm representative (large firm or SME) is $500. Expenses 
for lodging, some meals, incidentals, and airfare to/from Turkey 
(including the domestic flight from Ankara to Istanbul) will be the 
responsibility of each mission participant.
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    \*\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing schedule reflects the Commercial Service's user fee 
schedule that became effective May 1, 2008 (for additional 
information see http://www.export.gov/newsletter/march2008/initiatives.html).
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Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the Department of Commerce 
receives an incomplete application, the Department may reject the 
application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least fifty-one percent U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of a company's products or services to the 
mission's goals
     Applicant's potential for business in Turkey, including 
likelihood of exports resulting from the trade mission
     Consistency of the applicant's goals and objectives with 
the stated scope of the trade mission
    Any partisan political activities (including political 
contributions) of an applicant are entirely irrelevant to the selection 
process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (http://www.trade.gov.trade-missions) 
and other Internet web sites, press releases to general and trade 
media, direct mail, notices by industry trade associations and other 
multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows. The timeline for recruitment of this 
mission will allow for vetting and selection decisions on a rolling 
basis beginning January 17, 2012 until the maximum of 15-20 
participants are selected or until the application period ends on 
September 28, 2012. Although applications will be accepted through 
September 28, 2012, applications received after that date will be 
considered only if space and scheduling constraints permit. All 
interested U.S. firms are encouraged to submit their applications as 
soon as possible. We will inform applicants of selection decisions as 
soon as possible after they are internally reviewed.

Contacts

    U.S. Commercial Service Turkey: Mr. Thomas Bruns, Commercial 
Officer, (until July 15, 2012), Email: [email protected], Tel: 
(90) (312) 455-5555, Fax: (90) 312-467-1.
    U.S. Commercial Service Aerospace and Defense Technology Team: Mark 
A. Cooper, Director, U.S. Department of Commerce, U.S. Export 
Assistance Center--Indiana, 1-(317) 582-2300, Email: 
[email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-1435 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-FP-P