[Federal Register Volume 78, Number 47 (Monday, March 11, 2013)]
[Notices]
[Pages 15341-15343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05522]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
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  Federal Register / Vol. 78, No. 47 / Monday, March 11, 2013 / 
Notices  

[[Page 15341]]



DEPARTMENT OF COMMERCE

International Trade Administration


Auto Supply Chain Trade Mission to Mexico City and Monterrey, 
Mexico; September 23-26, 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's, U.S. and Foreign Commercial Service (CS) is 
organizing an auto supply chain trade mission to Mexico City and 
Monterrey, Mexico, September 23-26, 2013. This mission is intended to 
focus on a variety of U.S. industry and service providers, particularly 
those suppliers of spare parts, original equipment manufacturer (OEM) 
parts and components, hybrid vehicle components, precision assembly 
devices and systems that enhance efficiency in the OEM manufacturing 
process.
    The mission will introduce participants to end-users and 
prospective partners whose needs and capabilities are targeted to the 
respective U.S. participants' strengths. Participating in an official 
U.S. industry delegation, rather than traveling to Mexico 
independently, will enhance the companies' abilities to secure meetings 
with potential partners and buyers.

Commercial Setting

    The $500 billion in annual bilateral trade between the United 
States and Mexico is fueled in large part by industrial manufacturing 
centers located throughout northern and central Mexico, which is also 
supported by an ever-growing national cargo transportation industry.
    Mexico's automotive industry ranks as the 8th largest vehicle 
producer in the world and the second-largest in Latin America. The 
automotive sector accounts for 17.6 percent of Mexico's manufacturing 
sector and 3 percent of its national GDP contribution. There are 
currently nine manufacturers in Mexico: General Motors, Chrysler, Ford, 
Nissan, Fiat, Renault, Honda, Toyota, and Volkswagen. This 
manufacturing base produces 42 brands in 20 manufacturing plants. 
Nissan, GM, Volkswagen, and Honda plan to increase their production in 
Mexico while Fiat, Audi and Mazda are currently opening up new plants 
for vehicle manufacturing in Mexico. Vehicle production in Mexico has 
almost doubled in the past three years.
    The northern state of Nuevo Leon represents 27 percent of the 
national auto parts industry and it is the world leader in the 
production of aluminum components such as cylinder heads, engine blocks 
and transmission parts. Exports from this state represented 11.8 
percent of Mexico's automotive exports and automotive manufacturing 
grew 83 percent in the last five years.
    In 2012, Mexico produced more than 2.8 million cars- and the 
projection for 2013 is 3 million cars. 83 percent of its production is 
devoted to exports and the remaining 17 percent go to the domestic 
market. The National Auto parts Industry Association (INA) reported 
significant growth of the auto parts industry from 2011 to 2012.
    In 2012, the Mexican automotive industry experienced a 12.4 percent 
growth of local vehicle production due to higher demand, domestically 
as well as in the United States and other markets. The countries to 
which Mexico exports include: United States (63.9 percent); Canada (6.8 
percent); Latin America (15.5 percent); Asia (2 percent), Europe (9 
percent) and others (1.3 percent). Mexican vehicle sales in 2012 
increased 9 percent compared with 2011. Market realities have led to 
new trends in car manufacturing, including smaller car sizes and 
increased fuel efficiency.
    The aftermarket is expected to increase, as Mexico imposed new 
duties and requirements on the importation of used vehicles since 2009. 
As a result, repair and maintenance of used vehicles in Mexico will 
require varied parts. In addition, other opportunities exist for U.S. 
exporters of spare parts, equipment and new technologies oriented to 
reduce costs and time spent on maintenance and repairs.

Best Prospects

    The greatest opportunities include: Spare and replacement parts for 
gasoline and diesel engines; electrical parts, collision repair parts; 
gear boxes; drive axles; catalytic converters; and steering wheels. In 
the first and second-tier supply chain sector, opportunities include: 
OEM parts and components; precision assembly devices; machined parts; 
hybrid vehicle components; suspension systems; and pre-assembly 
components such as small and progressive stampings. Other products in 
demand include: Electronic components; specialized tooling; systems 
that eliminate waste and green technologies such as new combustion 
systems to reduce gas emission and oil consumption.
    In addition, identified needs include: Injection molding (small and 
large components), aluminum extrusion and post fabrication (anodizing, 
machining, punching, assembly); steel stamping for sunroof components, 
aluminum die casting for sun roof components; rubber parts for sunroof 
or fuel tank cushion; compression molding; glass for sunroof; fuel tank 
components (plastic tubes), fuel tank components (valves e.g. ORVR/VSF, 
joints); fuel tank components (pump O-ring); cold forging; plastic 
molding; rubber molding; die casting; and machining equipment.

Mission Goals

    The short term goals of the Auto Supply Chain Trade Mission to 
Mexico are (1) to introduce U.S. companies to potential end-users, 
distributors and representatives in Mexico City, Monterrey, and their 
surrounding areas, and (2) to introduce U.S. companies to industry 
leaders and government officials in Mexico City and Monterrey to learn 
about various opportunities in the automotive industry.

Mission Scenario

September 23/Mexico City

    Mission participants have a breakfast briefing including an 
overview of the auto industry, doing business in Mexico, and a review 
of the mission itinerary. The delegation then tours an automotive 
manufacturer's facility (Chrysler) in Toluca, Mexico and

[[Page 15342]]

attends a presentation on the purchasing process for Mexican automotive 
companies. The day will close with a reception with local industry 
leaders and government officials.

September 24/Mexico City

    Companies have a full day of matchmaking appointments with Mexico 
City companies.

OR

    Presentations from General Motors and Ford on their purchasing 
process for suppliers
    Mission participants depart the evening of September 24 to 
Monterrey.

September 25/Monterrey

    Mission participants have a short briefing and review the mission 
itinerary. The delegation then tours an automotive plant in Monterrey 
and receives a presentation on the purchasing process for Mexican 
automotive companies.
    The tour will be followed by the inauguration of the new automotive 
parts trade show at Cintermex (a U.S. Department of Commerce strategic 
partner) with time to tour the show and talk to exhibitors. The day 
will close with a reception with local industry leaders and government 
officials.

September 26/Monterrey

    Companies have a full day of matchmaking appointments with 
Monterrey companies. The mission ends that afternoon and mission 
participants can depart that night or the following morning.
    The following items are included in the price of the trade mission:
     Pre-travel Webinar briefing, covering Mexican business 
practices and security;
     National promotion within Mexico of trade mission, 
including wide circulation of printed company directory;
     Welcome receptions in Mexico City and Monterrey with 
industry representatives;
     Commercial breakfast briefings in Mexico City and 
Monterrey;
     Group transportation to all receptions and plant tours;
     Discounted hotel rates in Mexico City and Monterrey;
     One day of pre-scheduled meetings (4-5 meetings each stop) 
with potential partners, distributors, end users, or local industry 
contacts in both Mexico City and Monterrey;
     A designated escort/translator to provide assistance 
during scheduled matchmaking meetings.

Proposed Mission Agenda

    The mission program will begin in the morning of Monday, September 
23, 2013, and continue through the afternoon of September 26, 2013.

September 22 Mexico City
    Arrival/Hotel check-in
September 23 Mexico City
    Breakfast briefing
    Chrysler Plant tour
    Welcome reception
September 24 Mexico City
    Breakfast on your own
    Matchmaking meetings with potential clients, distributors/
representatives; or
    Headquarters visits to:
    GM--company presentation and purchasing process
    Ford--company presentation and purchasing process
    Depart Mexico City en route to Monterrey
    Arrival/Hotel check-in Monterrey
September 25 Monterrey
    Breakfast briefing
    Plant tour
    Inauguration and tour of automotive trade show
    Evening Reception
September 26 Monterrey
    Breakfast on your own
    Matchmaking meetings with potential clients, distributors/
representatives
    Depart Monterrey that night or the following morning

Participation Requirements

    All parties interested in participating in the Auto Supply Chain 
Trade Mission to Mexico must complete and submit an application for 
consideration by the U.S. Department of Commerce. All applicants will 
be evaluated on their ability to meet certain conditions and to satisfy 
the selection criteria as outlined below. This mission has a goal of a 
minimum of 15 and a maximum of 20 companies to be selected to 
participate in the mission from the applicant pool. U.S. companies 
already doing business in Mexico as well as U.S. companies seeking to 
enter the market for the first time are encouraged to apply.

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 will be US $3450 
for large firms and $2900 for a small or medium-sized enterprise 
(SME).\1\ The fee for each additional firm representative (large firm 
or SME) is $300. Expenses for air travel (to Mexico City, Monterrey and 
return), lodging, meals and incidentals will be the responsibility of 
each mission participant.
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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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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 U.S. 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 Mexico, 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 (i.e., the sectors indicated in 
the mission description)
    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 Commerce 
Department trade mission calendar (http://export.gov/trademissions/) 
and other Internet Web sites, press releases to general and trade 
media, direct mail, industry trade associations and other multiplier

[[Page 15343]]

groups, and publicity at industry meetings, symposia, conferences, and 
trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than July 12, 2013. CS Mexico will review all applications on a 
rolling basis and will inform applicants as they are accepted. 
Applications received after the July 12, 2013 date will be considered 
only if space and scheduling constraints permit.

Contacts

U.S. Commercial Service--Mexico

Ms. Monica Martinez, Commercial Specialist, U.S. Commercial Service 
Mexico--Mexico City, Tel: +52 55 5140-2628, [email protected]
Mr. John Howell, Principal Commercial Officer, U.S. Commercial Service 
Mexico--Monterrey, Tel: + 52 81 8047-3223, [email protected]
Ms. Yazmin Rojas, Commercial Specialist, U.S. Commercial Service 
Mexico--Monterrey, Tel: +52 81 8047-3118, [email protected]

U.S. Commercial Service--United States

Ms. Eve Lerman, Senior International Trade Specialist, U.S. Commercial 
Service--East Michigan, Tel: +1 248 975-9605, [email protected]

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-05522 Filed 3-8-13; 8:45 am]
BILLING CODE 3510-DS-P