[Federal Register Volume 78, Number 47 (Monday, March 11, 2013)]
[Notices]
[Pages 15343-15346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05507]
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DEPARTMENT OF COMMERCE
International Trade Administration
Multi-State, Multi-Sector Trade Mission to Colombia; September 9-
12, 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, U.S. and Foreign Commercial Service (US&FCS), in
collaboration with the American Chamber of Commerce in Bogot[aacute],
is organizing a Trade Mission to Bogot[aacute], Colombia from September
9-12, 2013. The purpose of this mission is to assist U.S. companies in
launching or increasing exports of U.S. goods or services to Colombia.
The mission will include business-to-business matchmaking appointments
with local companies, as well as market briefings and networking
events.
The mission is open to U.S. companies from a cross section of
industries with growing potential in Colombia, including, but not
limited to safety and security equipment and services, medical
equipment, cosmetics, agricultural machinery, and information
technology.
Commercial Setting
Why Colombia?
The U.S.-Colombia Trade Promotion Agreement (TPA), which entered
into force on May 15, 2012, creates market opportunities for U.S. firms
in a number of sectors. The U.S.-Colombia TPA provides duty-free entry
for over 80 percent of U.S. consumer and industrial exports to
Colombia, with remaining tariffs to be phased out over the next 10
years. The U.S.-Colombia TPA also opens the market for remanufactured
goods and provides greater protection for intellectual property rights
(IPR). Colombia's traditional acceptance of U.S. brands as well as U.S.
and international standards provide a solid foundation for U.S. firms
seeking to do business there.
Colombia is the third largest market in Latin America, after Mexico
and Brazil, and is ranked 22nd globally as a market for U.S. exports.
Over the past 10 years, Colombia has become one of the most stable
economies in the region. Improved security, sound government policies,
steady economic growth, moderate inflation and a wide range of
opportunities make it worthwhile for U.S. exporters to consider
Colombia as an export destination. With more than 45 million people, an
improved security environment, an abundance of natural resources, and
an educated and growing middle-class, business opportunities are
booming in Colombia. The country's last two governments implemented
policies that took Colombia on the path to global competitiveness,
opening it up to global trade and investment for 10 consecutive years.
Colombia's strong economic growth, moderate inflation rates, and sound
fiscal policies have made it a haven of stability in a time of economic
uncertainty. Over the last decade, the country's economy is estimated
to have grown over 4% on average; inflation was kept in the single
digits and is expected to remain well within the Central Bank of
Colombia's 2% to 4% range. Furthermore, the Government's strict fiscal
discipline led many international credit agencies to improve Colombia's
credit rating to investment grade for the first time in over 10 years.
Increasing Foreign Direct Investment (FDI) in Colombia demonstrates
Colombia's rise as a business destination. In 2011, FDI into Colombia
reached a historic US$13.4 billion from only US$2.4 billion in 2000, a
fivefold increase in just ten years, with forecasts of continued growth
through the next five years.
By 2011, Colombia's total international trade surpassed US$111
billion, exports reached US$56 billion while imports reached a historic
US$55 billion. After implementing free trade agreements (FTAs) with the
United States and with Canada, Colombia continues to move aggressively
in opening up to trade, seeking to quickly implement FTAs negotiated
with the European Union and South Korea, as well as moving ahead in
negotiations with countries such as Japan, Turkey, Costa Rica and
Israel.
Best Prospects for U.S. Companies
Safety and Security Industry
The safety and security market in Colombia is a very dynamic
sector, growing at an estimated rate of 5 to 10% per year. It is also
estimated that the total Colombian budget for defense is US$10 billion
in 2012 (close to 6% of GDP). The Colombian government is investing
heavily in intelligence equipment and services. Market opportunities
exist for safety and security industry products such as CCTV cameras,
telephones for security, reproduction and record devices for security,
data processing equipment, radio transmission, biometric equipment, and
communication jammers, among others. Opportunities exist in the defense
sector for helicopters and fixed wing parts and maintenance services,
unmanned aerial vehicles (UAVs), Improvised Explosive Devices (IEDs)
and mine detectors, modern communication systems (MCS), IT-structure
platforms, marine and coastal surveillance systems and logistics
software solutions and applications, among others. The U.S.-Colombia
TPA reduced tariffs for a wide variety of products and services in the
safety and security industries.
Medical Equipment
Strong opportunities exist for exports of medical equipment and
other health industry-related products and services to Colombia.
Following the entry into force of the U.S.-Colombia TPA, approximately
98% of all U.S. medical equipment imports into Colombia are subject to
zero tariffs. U.S. imports enjoy the largest share of the local market,
accounting for around a third of all medical equipment imports.
Currently,
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the strongest competitors are companies from Germany and Japan, and
companies from China are quickly increasing their market share. The
best approach to enter into this market is through distributors.
In 2011, Colombia imported medical equipment & supplies valued at
US$985 million, their highest ever level. A few multinationals
manufacture in the country. The medical device industry is concentrated
around the capital Bogot[aacute]. Per capita spending on medical
devices is average for the region.
According to a 2012 study by America Economia Intelligence, seven
of the twenty best hospitals and clinics in Latin America are located
in Colombia, including: Hospital Fundacion Santa Fe in Bogota (4th
place); and Fundacion Valle del Lili in Cali, Fundacion Cardioinfantil
in Bogota, and Fundacion Cardiovascular de Colombia in Bucaramanga
(7th, 8th, and 9th place, respectively).
Cosmetics
Colombia is the fifth largest market for cosmetics in Latin
America, following Brazil, Mexico, Argentina and Venezuela. The
estimated market size in 2010 was US$ 6.2 million. Local production of
cosmetics, toiletries, and personal hygiene products has been growing
on an average of 4.4% since 2003. Local production reached US$2.7
million in 2010.
The Colombian cosmetic market is attractive for U.S. companies for
various reasons:
Highest rate of females in the workplace in Latin America.
Female participation in the labor force is 44.6% (2007) in Colombia.
Women's participation in the labor market has increased over 11% in the
past five years;
Use of free trade zones for cosmetic and toiletry
products, with corporate tax benefits;
Convenient geographic location as a global export hub;
Zero tariffs on many U.S. products in the cosmetic sector.
Agricultural Equipment
Colombia is the 18th largest market for U.S. agricultural equipment
exports. The U.S.-Colombia TPA provided immediate tariff reduction to
0% from 10% on combines, to 0% from 15% on tractors, and reductions on
other equipment. The U.S.-Colombia TPA eliminated Colombia's
restrictions on the importation of remanufactured goods, and the
Government of Colombia is encouraging farmers to participate in lease
programs. The agricultural equipment sector accounted for nearly US$19
million in U.S. exports to Colombia over 2008-10 (average) or less than
1 percent of total U.S. industrial exports to Colombia. Colombia has
been a net food importer because food production was disrupted by the
unstable security environment. With improved security, areas that had
gone unfarmed for prolonged periods are now producing, and the
agricultural sector in Colombia is likely to continue to grow without
affecting natural forests. Barely 8% of the potential arable land is
effectively used. The availability of water resources in Colombia is
among the highest in the world with nearly 45,202 cubic meters per
capita per year which exceeds the South American average and is
significantly higher than other regions in North America, Europe and
Asia. The Government of Colombia is developing policies to incentivize
the agriculture sector in Colombia, which, if carried out, will lead to
opportunities for U.S. exporters of agricultural equipment.
Information Technology
Colombia's IT sector has been experiencing very dynamic growth due
to government investment in infrastructure, expanding connectivity
throughout the country, and transitioning it from being a hardware-
demand driven market to a market that incorporates more value-added IT
spending. The Ministry of Information Technology and Communications'
(MinTIC) is halfway through its broadband expansion plan called Vive
Digital, which seeks to provide connectivity to 8 million Colombians
throughout the entire country by 2014. While all of the major bids for
this process are in the execution phase, the new connectivity
environment is very likely to drive up demand for services by
households and businesses, which will seek to take advantage of
expanded Internet access.
With the expected continuation of an advancing Colombian economy,
the establishment of new businesses in the country should continue and
even increase, particularly as Colombia moves forward in the
implementation of the Free Trade Agreements it has negotiated. This
trend should sustain the demand for hardware and software equipment.
Additionally, as local companies continue to grow in size and scope of
operations, they too are expected to strengthen their IT capabilities
with investments in data centers and Customer Relationship Management
Solutions, as well as IT Risk Services.
Major government programs led by new entities such as iNNpulsa, are
allocating funds for technology modernization programs geared towards
small and medium companies, which make up more than 90% of all
Colombian businesses, and have been found to have very low rates of
technology penetration and connectivity. This, in combination with a
reduction in tariffs and taxes, particularly for new equipment such as
computers and tablets, demonstrates significant opportunities for U.S.
exporters in the IT industries.
Other Products and Services
The foregoing analysis of the above industry sectors in Colombia is
not intended to be exhaustive, but illustrative of the many
opportunities available to U.S. businesses. Applications from companies
selling products or services generally within the scope of this mission
will be considered and evaluated by the U.S. Department of Commerce.
Companies whose products or services do not fit the scope of the
mission may contact their local U.S. Export Assistance Center (USEAC)
to learn about other business development missions and export promotion
services that may provide more targeted export opportunities. Companies
may call 1-800-872-8723, or go to http://help.export.gov/ to obtain
such information. This information also may be found on the Web site:
http://www.export.gov.
Mission Goals
The goal of the trade mission to Colombia is to help participating
firms gain market insights, make industry contacts, solidify business/
sector strategies, and advance specific projects, with the goal of
increasing U.S. exports to Colombia. Participants will have access to
the US&FCS Senior Commercial Officer in Bogot[aacute] and to US&FCS
Commercial Specialists during the mission. They will learn about the
many business opportunities in Colombia, and gain first-hand market
exposure. Participants already doing business in Colombia will have
opportunities to further advance business relationships and projects in
that market. U.S. companies new to Colombia will gain support in
finding agents, distributors, and joint venture partners through this
mission, laying the foundation for successful long-term ventures by
providing business-to-business introductions and market access
information.
Mission Scenario
The mission will stop in Bogot[aacute], Colombia. Participants will
meet with pre-screened potential agents,
[[Page 15345]]
distributors, and representatives, as well as other business partners
and government officials. They will also attend market briefings by
U.S. Embassy officials and networking events offering further
opportunities to speak with local business and industry decision-
makers.
Proposed Time Table
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Monday, September 9, 2013, Bogota, Arrival.
Colombia. Market Briefing.
Networking reception.
Tuesday, September 10, 2013, Bogota, Matchmaking appointments and/or site visits.
Colombia.
Wednesday, September 11, 2013, Bogota, Matchmaking appointments.
Colombia.
Thursday, September 12, 2013, Bogota, Depart.
Colombia.
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Participation Requirements
All parties interested in participating in the Trade Mission to
Colombia must complete and submit an application package 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. A minimum of 15 and a maximum
of 30 U.S. companies will be selected to participate in the mission
from the applicant pool on a first-come, first-served basis. U.S.
companies already doing business with Colombia, as well as U.S.
companies seeking to enter this market for the first time, may apply.
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 US$1,995 for a small or
medium-sized enterprise (SME) \1\ and US$3,040 for a large firm
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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/contractingopportunities/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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The fee for each additional representative is US$450.
Expenses for travel to and from the mission, lodging, most
meals, and incidentals will be the responsibility of each mission
participant.
Intergovernmental Cooperation and Assistance for Small Businesses
The U.S. Small Business Administration is partnering with State
trade organizations to promote increased trade and exporting through
the State Trade and Export Promotion (STEP) program. As part of this
program, some States are offering financial assistance for U.S. small
businesses to assist them in pursuing export opportunities, such as
through participation on a Department of Commerce trade mission. Small
businesses interested in more information about the STEP in their State
are encouraged to contact their State STEP representative (contact
information available by clicking on the interactive map at
www.sba.gov/step) to learn more about the resources and assistance
offered by their State trade organization.
Conditions of 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, listed in
decreasing order of importance:
Suitability of the company's products or services for the
Colombian market
Company's potential for business in Colombia, including
likelihood of exports resulting from the mission
Consistency of the applicant's goals and objectives with
the stated scope of the trade mission
Referrals from political organizations and any documents 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 Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the U.S.
Department of Commerce trade mission calendar (www.export.gov/trademissions) and other Internet Web sites, press releases to general
and trade media, notices by industry trade associations and other
multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows.
Recruitment will begin immediately and conclude no later than
Friday, June 7, 2013. The U.S. Department of Commerce will review
applications and make selection decisions on a rolling basis beginning
[at least two weeks after FR notice date of publication] until the
maximum of thirty participants is reached. We will inform all
applicants of selection decisions as soon as possible after
applications are reviewed. Applications received after the June 7th
deadline will be considered only if space and scheduling constraints
permit.
How To Apply
Applications can be downloaded from the trade mission Web site or
can be obtained by contacting April Redmon or Leandro Solorzano at the
U.S. Department of Commerce (see contact details below.) Completed
applications should be submitted to April Redmon or Leandro Solorzano.
Contacts
U.S. Commercial Service
Trade Americas Team: Ms. April Redmon, International Trade
Specialist, U.S. Commercial Service--Virginia/Washington, DC, 2800 S.
Randolph St., Suite 800, Arlington, VA 22206, Tel: 703-756-1704, Email:
[email protected].
Leandro Solorzano, International Trade Specialist, U.S. Commercial
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Service--Ft. Lauderdale, 1850 Eller Dr., Suite 401, Fort Lauderdale, FL
33316, Tel: 954-356-6647, Email: [email protected].
U.S. Commercial Service in Colombia: Carlos Suarez, Commercial
Specialist, U.S. Commercial Service Bogota, Tel: 011-571-275-2690,
Email: [email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-05507 Filed 3-8-13; 8:45 am]
BILLING CODE 3510-FP-P