[Federal Register Volume 77, Number 157 (Tuesday, August 14, 2012)]
[Notices]
[Pages 48499-48503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19823]
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DEPARTMENT OF COMMERCE
International Trade Administration
U.S. Multi-Sector Trade Mission to South India and Sri Lanka
Chennai and Cochin, India and Colombo, Sri Lanka February 3-8, 2013
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce, International Trade
Administration (ITA), U.S. and Foreign Commercial Service (CS), along
with the U.S. Embassy in Sri Lanka, are organizing a Trade Mission to
South India and Sri Lanka from February 3-9, 2013. The purpose of the
mission is to introduce U.S. firms to South India's and Sri Lanka's
rapidly expanding markets for infrastructure, hospitality, healthcare,
and environmental and information technologies.
The mission will tour three cities, Chennai, Cochin (Kochi) and
Colombo, where participants will receive market briefings and
participate in customized meetings with key officials and potential
partners. Trade mission participants will also have the option to
participate in additional stops in Bangalore and Hyderabad (both in
south India), where CS offices can arrange meetings with private sector
developers/partners and state/local government officials.
The mission will help participating firms gain market insights,
make industry contacts, solidify business strategies, and advance
specific projects, with the goal of increasing U.S. exports of services
to India and Sri Lanka. The mission will include one-on-one business
appointments with pre-screened potential buyers, agents, distributors
and joint venture partners; meetings with state and local government
officials and industry leaders; and networking events. Participating in
a CS-organized trade mission delegation, rather than traveling to India
and Sri Lanka on their own, will enhance the companies' ability to
secure meetings in both countries.
[[Page 48500]]
The mission supports President Obama's National Export Initiative
(NEI) and its goal of doubling U.S. exports by 2015 to strengthen the
U.S. economy and U.S. competitiveness through meaningful job creation.
It also supports the International Trade Administration's Growth in
Emerging Metropolitan Sectors (GEMS) initiative by visiting areas with
strong potential for exports that are not typically visited. The
mission will help U.S. companies already doing business to increase
their footprint in India and Sri Lanka and realize their export goals.
Commercial Setting
India, one of the world's fastest growing economies, presents
lucrative opportunities for U.S. companies that offer products and
services that could help to meet the nation's rapidly expanding
infrastructure and housing needs. India is seeking to invest $1
trillion in its infrastructure during its 12th Five-Year Plan (2012-
2017) and is seeking private sector participation to fund half of this
massive expansion through the Public-Private Partnership (PPP) model.
The rapid growth of the Indian economy (averaging 8% over the past 10
years, though down as low as 6.4% recently) has created a pressing need
for infrastructure development and the country requires significant
outside expertise to meet its ambitious targets. U.S. industry is well
qualified to supply the kinds of architectural, design and engineering
services, and project management skills needed to successfully tackle
major initiatives, including the proposed 250-km Bangalore-Chennai
expressway, to be built at a cost of $1 billion. U.S. clean tech/energy
efficient technologies are also well positioned to be deployed in new
industrial zones in this chronically energy-deficient country. The
Indian electricity sector faces many challenges in trying to meet the
ever increasing demand-supply gap. Energy losses in India's
transmission and distribution sector exceed 30%, which ranks among the
highest rates of energy loss in the world. Investment in India's
electricity infrastructure sector will be driven by the need to upgrade
out-of-date transmission and distribution systems, reducing electricity
theft and increasing energy efficiency. The modernization of India's
electric grid and the eventual deployment of smart grid technologies
will create opportunities for equipment and service providers from the
U.S.
The end of Sri Lanka's (CS Chennai is Sri Lanka's Partners Post)
long-running civil war in May 2009 has opened a new era of economic
opportunities and rebounding economic growth. The Government of Sri
Lanka (GSL) has set very ambitious goals for economic development,
aspiring to GDP growth rates over 8%, and developing economic hubs in
ports, aviation, knowledge, hospitality, leisure/tourism and energy.
Compared to other South Asian countries, Sri Lanka is relatively open
to foreign investment. It offers a comparatively open financial system,
moderately good infrastructure, and a capable workforce.
The private sector-led growth of the economy is expected to
continue to expand with the ending of the ethnic conflict and opening
up of the north-eastern regions for investment and trade. The
government is promoting new destinations in Sri Lanka, and several
international hotel brands are planning to enter the hotel industry in
Sri Lanka. The transportation sector is estimated to contribute 12% to
the country's GDP. While the country's road network is being
significantly improved, other areas, including railways, need
considerable expansion. The country's transportation ministry is
focused on developing the transport sector, previously neglected during
the protracted ethnic conflict, and is looking for investments to
develop existing infrastructure. The government has a particular
interest in railway subdivision, and is looking at railways to play a
bigger role in the transportation sector in general. Tourism, in
particular, relies heavily on transportation--almost one-third of a
tourist's in-country expenditures in Sri Lanka are on transport and
tour-related services. According to government sources, the transport
sector will earn more than $1 billion per year from tourism alone if
tourist arrivals exceed 2 million per year in 2016 as expected. The
government has set a target of 2.5 million tourist arrivals by 2016 and
the industry estimates it will need an additional 40,000 rooms in the
next five years to achieve this target. The current growth and
increasing demand in the infrastructure, hospitality and transport
sectors will provide opportunities for U.S. companies to expand and
grow in these areas.
As Indian and Sri Lankan developers expand their capabilities and
construct and connect new industrial facilities, foreign firms often
play a major role in design, construction, engineering and management
of their signature projects. The Indian and Sri Lankan infrastructure
industries are integral parts of their respective economies and
conduits for a substantial part of development investment. The
infrastructure sector is poised for additional growth due to the dual
trends of industrialization and urbanization, and the rising
expectations of Indian and Sri Lankan citizens for an improved standard
of living as a result of economic development. As a result, there are
also tremendous opportunities for U.S. firms in the areas of
environmental technologies, IT and healthcare products as India and Sri
Lanka boost their infrastructure and building requirements.
Target subsectors holding high potential for U.S. exporters
include: urban development projects, airport/port development,
hospitals and health care, hospitality, cold storage, multi-family
residential and townships, educational, telecom, and oil exploration
related services and supplies.
To explore these opportunities the trade mission will visit three
cities as described below:
Chennai, Tamil Nadu
Chennai (also known as Madras) is the capital city of the Indian
state of Tamil Nadu. Located on the Coromandel Coast off the Bay of
Bengal, it is a major commercial, cultural, and educational center in
South India; the port of Chennai is the second largest port in India.
As of the 2011 census, the city had 4.68 million residents, making it
the sixth most populous city in India; the urban agglomeration, which
comprises the city and its suburbs, was home to approximately 8.9
million, making it the fourth most populous metropolitan area in the
country. According to Forbes magazine, Chennai is one of the fastest
growing cities in the world. It has a diversified economic base
anchored by the automobile, software services, hardware manufacturing,
health care and financial services industries. According to the
Confederation of Indian Industry, Chennai is estimated to grow to a
$100 billion economy, 2.5 times its present size, by the year 2025.
Chennai possesses a broad need for all building types, but
corporate campuses, education, housing, infrastructure, and master-
planning efforts are the most active development sectors. The Chennai
realty market has been growing at over 8 per cent a year and there are
at least 675 real estate projects underway and 43.5 million square feet
of area is awaiting approval for development with the local government
in Chennai. The residential real estate market is expected to register
strong growth in 2012, primarily on account of improvement in the
information technology (IT) sector, and continued economic growth in
the region.
[[Page 48501]]
Cochin (Kochi), Kerala
Cochin (Kochi) is widely referred to as the commercial capital of
Kerala. The availability of electricity, fresh water, long coastline,
backwaters, good banking facilities, presence of a major port,
container trans-shipment terminal, harbor terminal and an international
air terminal are some of the factors which accelerated the industrial
growth in the city and its adjoining district. In recent years the city
has witnessed heavy investment, making it one of the fastest-growing
second-tier metro cities in India. Major business sectors include
construction, manufacturing, shipbuilding, transportation/shipping,
seafood and spices exports, chemical industries, information technology
(IT), tourism, health services, and banking.
The Cochin Port currently handles export and import of container
cargo at its terminal at Willingdon Island. The International Container
Transshipment Terminal operating out of Vallarpadam, is India's largest
transshipment terminal. The Cochin Port Trust also planning to build an
Outer Harbor. Upon completion it will be the largest port in South
Asia.
Colombo, Sri Lanka
CS Chennai is the Partner Post for the U.S. Embassy in Sri Lanka.
The Partner Post Program is intended to provide the best possible
service to American companies seeking assistance in countries where the
CS has no presence. Through the Partner Post program, the State
Department Economic Section in a non-CS post draws on the specialized
advice and experience of a sponsoring CS post to better assist U.S.
business clients enter more markets throughout the world.
Compared to other South Asian countries, Sri Lanka is relatively
open to foreign investment. It offers relatively transparent financial
systems, moderately good infrastructure, and a generally capable
workforce. U.S.--Sri Lanka bilateral trade was estimated at $2.2
billion in 2011, U.S. exports to Sri Lanka were $280 million in 2011,
and U.S investments in Sri Lanka totaled approximately $200 million
that year.
The end of Sri Lanka's 26-year civil war in May 2009 has ushered in
a new era of economic opportunities and strong economic growth. Sri
Lanka had two straight years of 8% GDP growth in 2010 and 2011.
President Rajapaksha was elected for a second six-year term in January
2010, and President Rajapaksha's Sri Lanka Freedom Party holds a two-
third majority in Parliament, giving President Rajapaksha control of
the legislative branch as well. With the return of peace, sectors such
as construction, telecommunications, tourism and transportation offer
enormous opportunities for U.S. companies.
Mission Goals
The goals of the Three C--Chennai, Cochin, and Colombo--Trade
Mission to South India and Sri Lanka are to provide U.S. participants
with first-hand market information, and one-on-one meetings with
business contacts, including potential end users and partners, so that
they can position themselves to enter or expand their presence in south
India and Sri Lanka. As such, the mission will focus on helping U.S.
companies to obtain market information, to establish business and
government contacts, to solidify business strategies, and/or to advance
specific projects.
The mission will also facilitate first-hand market exposure and
access to government decision makers and key private-sector industry
contacts, including potential partners. It will provide opportunities
for participants to have policy and regulatory framework discussions
with government officials and private sector representatives in order
to advance U.S. company's interests in India and Sri Lanka.
Mission Scenario
The first stop on the mission itinerary is Chennai, where
participants will start arriving on Sunday, February 3, 2013. The next
day the participants will participate in industry briefings, one-on-one
business meetings, and networking lunch meetings with chamber/
associations. After lunch, the one-on-one meetings will continue
followed by a networking reception. CS Chennai will seize opportunities
to tap into the wealth of industry contacts and offer matchmaking, and
networking opportunities for the mission members.
On Tuesday morning the delegates will start with a site visit, and
depart for Cochin. On Wednesday morning the delegates' program will
start with a briefing meeting, followed by one-on-one meetings.
Simultaneously, there will be an option to participate in a meeting
with the Government of Kerala. At noon, there will be a networking
luncheon with local businesses and multipliers. After lunch, the one-
on-one meetings will continue. On Thursday morning the delegation will
depart for Colombo, Sri Lanka.
Finally, the delegation will visit Colombo, the capital city of Sri
Lanka. There the delegation will participate in a reception hosted by
the U.S. Ambassador and attend various briefings by Embassy officials
and roundtables/workshops with potential Sri Lankan partners, followed
by a networking lunch, one-on-one meetings and a debrief meeting. Sri
Lanka is envisioned as the gateway to the Indian market and is situated
on a geographically ideal route for trade with much of the Middle East
and Asia. The Government of Sri Lanka (GSL) has set very ambitious
goals for economic development, and developing economic hubs in ports,
aviation, knowledge, hospitality, leisure/tourism and energy. The trade
mission participants will have the opportunity to participate in
briefings, a networking reception, and one-on-one meetings. Through the
Partner Post program, State Department colleagues in Sri Lanka have
organized CS programs and services before, as well as two AmCham India
trade missions. Embassy Colombo is very supportive of this proposed
mission.
Trade mission delegates will also have the option of visiting
Bangalore, and Hyderabad for individual one-on-one meetings before the
official start of the mission in Chennai and Colombo.
Proposed Timetable
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Chennai
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Sunday, February 3................ Arrive in Chennai
Overnight stay at Chennai
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Monday, February 4................ Breakfast briefing by U.S. Consulate
Chennai officials
One-on-one business meetings
Networking lunch hosted by a Chamber
One-on-one business meetings
continue
[[Page 48502]]
Networking reception hosted by U.S.
Consul General
Overnight stay in Chennai
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Chennai/Cochin, Kerala
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Tuesday, February 5............... Site visits based on the cluster of
industry segments
Afternoon travel to Cochin, Kerala
Overnight stay in Cochin, Kerala
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Cochin, Kerala
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Wednesday, February 6............. Introductions from the American
Business Corner on ``Emerging
Opportunities in Kerala--an
upcoming State''
Meeting/Presentations by Government
of Kerala officials
One-on-one business meetings
Networking lunch with local industry
representatives
Overnight stay in Cochin
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Cochin/Colombo, Sri Lanka
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Thursday, February 7.............. Mid Morning travel to Colombo
Evening networking reception hosted
by U.S. Ambassador to Sri Lanka
Overnight stay in Colombo
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Colombo, Sri Lanka
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Friday, February 8................ Breakfast briefing by U.S. Embassy
officials in Sri Lanka
Roundtable Meetings/Workshop
Networking lunch hosted by the
Ceylon Chamber of Commerce and
Industry (TBC)
One-on-one business meetings
Debriefing/Wrap-up discussion
followed by dinner
Mission ends
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Participation Requirements
All parties interested in participating in the trade mission must
complete and submit an application package for consideration by the
U.S. Department of Commerce. All applicants will be evaluated on their
ability to meet certain conditions and best satisfy the selection
criteria as outlined below. A minimum of 12 and maximum of 15 companies
will be selected from the applicant pool to participate in the mission.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the U.S. Department of Commerce in the form of a
participation fee is required. The participation fee is $4481 for large
firms and $4303 for small or medium-sized enterprises (SME).\1\ The fee
for each additional representative is $750. The fee for optional stops
in Hyderabad or Bangalore (both in south India) is $700 per day per
city.
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\1\ 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 reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Exclusions
The mission fee does not include any personal travel expenses such
as lodging, most meals, local ground transportation, except as stated
in the proposed timetable, and air transportation from the U.S. to the
mission sites and return to the U.S. Delegate members will, however, be
able to take advantage of U.S. Government rates for hotel rooms.
Business visas may be required. Government fees and processing expenses
to obtain such visas are also not included in the mission costs.
However, the U.S. Department of Commerce will provide instructions to
each participant on the procedures required to obtain necessary
business visas.
Conditions for Participation
Applicants 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 either: reject the
application, request additional information/clarification, 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, are marketed under the name of a U.S. firm and have
at least fifty-one percent U.S. content. In cases where the U.S.
content does not exceed fifty percent, especially where the applicant
intends to pursue investment and major project opportunities, the
following factors, may be considered in determining whether the
applicant's participation in the trade mission is in the U.S. national
interest:
U.S. materials and equipment content;
U.S. labor content; repatriation of profits to the U.S.
economy;
Potential for follow-on business that would benefit the
U.S. economy;
In addition, each applicant must:
Certify that the products and services that it wishes to
market through the mission would be in compliance with U.S. export
controls and regulations;
Certify that it has identified to the Department of
Commerce for its evaluation any business pending before
[[Page 48503]]
the Department that may present the appearance of a conflict of
interest;
Certify that it has identified any pending litigation
(including any administrative proceedings) to which it is a party that
involves the Department of Commerce; and
Sign and submit an agreement that it and its affiliates
(1) have not and will not engage in the bribery of foreign officials in
connection with a company's/participant's involvement in this mission,
and (2) maintain and enforce a policy that prohibits the bribery of
foreign officials.
Selection Criteria for Participation
Targeted mission participants are U.S. companies providing
architectural and/or engineering services, environmental or IT
technologies, hospitality/tourism services and healthcare products that
have an interest in entering or expanding their business in the Indian
and Sri Lankan markets. The following criteria will be evaluated in
selecting participants:
Suitability of a company's products or services to the
Indian and Sri Lankan markets.
Applicant's potential for business in India and Sri Lanka,
including likelihood of exports resulting from the mission.
Consistency of the applicant's goals and objectives with
the stated scope of the mission.
Additional factors, such as diversity of company size, type,
location, and demographics, may also be considered during the review
process.
Referrals from political organizations and any documents, including
the application, containing references to partisan political activities
(including political contributions) will be removed from an applicant's
submission and not considered during the selection process.
Timeframe for Recruitment and Application
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.export.gov/trademissions/
) and other Internet web sites, press releases to general and trade
media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows.
Recruitment for this mission will begin immediately and conclude no
later than November 30, 2012. The U.S. Department of Commerce will
review applications and make selection decisions beginning December
2012. Applications received after November 30, 2012 will be considered
only if space and scheduling constraints permit.
How to Apply
Applications can be completed on-line at the Trade Mission Web site
or can be obtained by contacting Aileen Nandi at the U.S. Department of
Commerce (see contact details below.) Completed applications should be
submitted to Aileen Nandi.
Contacts
San Jose (Silicon Valley) Export Assistance Center, Aileen Crowe
Nandi, Commercial Officer, 55 S. Market Street, Suite 1040, San Jose,
CA 95113, Tel: (408) 535-2757, ex. 102, Email: [email protected].
U.S. Commercial Service India, James P. Golsen, Principal
Commercial Officer for South India, U.S. Commercial Service, Chennai,
India, Tel: +91-44-2857-4209, Email: [email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-19823 Filed 8-13-12; 8:45 am]
BILLING CODE 3510-FP-P