[Federal Register Volume 78, Number 155 (Monday, August 12, 2013)]
[Notices]
[Pages 48855-48859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-19391]


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DEPARTMENT OF COMMERCE

International Trade Administration


Secretarial Infrastructure Business Development Mission to Mexico 
November 18-23, 2013

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    United States Secretary of Commerce Penny Pritzker will lead a 
senior-executive Business Development Mission to Mexico from November 
18-23, 2013. This business development mission will promote U.S. 
exports to Mexico by helping export-ready U.S. companies launch or 
increase their business in a number of key industry sectors including: 
Advanced manufacturing, information and communications technology (ICT) 
goods and services, and health IT goods and services and medical 
devices. The mission will make stops in Mexico City and Monterrey.
    Participating firms will gain market information, make business and 
government contacts, solidify business strategies, and/or advance 
specific projects. In each of these targeted sectors, participating 
U.S. companies will meet with prescreened local partners, agents, 
distributors, representatives, and licensees. The agenda will also 
include meetings with high-level national and local government 
officials, networking opportunities, country briefings, and seminars.

[[Page 48856]]

    The delegation will be composed of representatives of 20-25 U.S. 
firms in the mission's target sectors. Representatives of the United 
States Trade and Development Agency (USTDA), the Export-Import Bank of 
the United States (Ex-Im) and the Overseas Private Investment 
Corporation (OPIC) will be invited to participate to provide 
information and counseling regarding their suite of programs and 
services in Mexico.

Commercial Setting

Overview

    Mexico is the United States' second-largest export market (after 
Canada) and third-largest trading partner (after Canada and China). In 
fact, the United States exports more to Mexico than to Brazil, Russia, 
India and China (BRIC) combined. With a World Bank Ease of Doing 
Business rank more favorable than that of any of the BRIC countries, 
this fast growing market, right on our doorstep, offers a wealth of 
opportunities for U.S. companies. Twenty-two U.S. states depend on 
Mexico as their first or second destination for exports and more than 
$1.25 billion in goods and services are traded between the United 
States and Mexico every day, supporting millions of jobs in both 
countries. Mexico and the United States together with Canada comprise 
one of the most competitive and successful regional economic platforms 
in the world.
    To further elevate and strengthen this dynamic bilateral commercial 
and economic relationship, President Obama and President Pe[ntilde]a 
Nieto established a High Level Economic Dialogue (HLED). The HLED, 
which will be led at the cabinet level, is envisioned as a flexible 
platform intended to advance strategic economic and commercial 
priorities central to promoting mutual economic growth, job creation 
and global competitiveness.
    Mexico's 2012 real GDP growth rate of 3.9% is expected to continue 
to climb in the coming years as labor, financial, education, telecom 
and energy reforms are implemented by the Mexican government.
    Mexico is the most populous Spanish-speaking country in the world 
with a population of 115 million, over half of whom are members of the 
upper and middle class. With a shared Western and Hispanic culture, 
U.S. producers find it easier to market and sell their services and 
products in Mexico than markets with different cultures. This may 
account for the fact that more than 18,000 U.S. companies have 
operations in Mexico, investing $150 billion in Mexico since 2000 and 
more than 54,000 U.S. companies currently export goods to Mexico.

Mexico City

    Mexico City is one of the largest cities in the world with over 20 
million people. It is the political capital and financial center of 
Mexico. Mexico City ranks 8th in terms of GDP globally with more than a 
third of the total Mexican economy concentrated here.
    The size of Mexico City's economy is $315 billion, compared to $1.1 
trillion for New York City and $575 billion for Chicago. Mexico City is 
the wealthiest city in Latin America, with a GDP per capita of $25,258 
and is home to the Mexican Stock Exchange.
    Mexico City is also a manufacturing and distribution powerhouse and 
is centrally located near major industrial areas including Toluca, 
Puebla and Queretaro. These industrial areas are responsible for the 
production of automobiles and automotive products, agricultural 
products, food processing, metals and machinery, paper products, 
chemicals and aeronautics.

Monterrey

    Monterrey is the third largest city in Mexico and the capital of 
the state of Nuevo Le[oacute]n. Despite having only 4% of Mexico's 
population, the Nuevo Le[oacute]n economy generates over 8% of the 
country's total GDP. It is the commercial, industrial, educational, and 
transportation hub of northern Mexico with GDP per capita almost twice 
that of the national average. There are over 2,600 international 
companies operating in Nuevo Le[oacute]n--1,600 from the United States. 
Within a two-hour drive to the U.S. border, the Monterrey business 
community maintains strong business and cultural affinity for the 
United States and for U.S. products and services. Ranked by the OECD as 
the most productive state in Mexico, Nuevo Le[oacute]n offers a 
business climate very open to both U.S. trade and investment.

Industry Sectors

Advanced Manufacturing

    ``Advanced manufacturing'' is a broad term that encompasses a 
variety of sectors, products and technologies. Generally speaking, 
advanced manufacturing is taken to mean the production of high value 
goods with complex specifications that create demand for both raw 
materials and intermediary components, as well as financial services, 
transportation, software and the like. Mexico boasts many of the most 
developed manufacturing sectors in Latin America, and exports more 
manufactured goods than the rest of Latin America combined. 
Manufacturing accounts for one third of Mexico's GDP. Mexico has 
established production chains in many sectors, and has systems, 
infrastructure, labor, and an established supplier base to support 
continued growth in advanced manufacturing. Advanced manufacturing is 
also an area of particular interest to the Mexican government.
    The United States has been Mexico's largest supplier of machinery 
and equipment for many years, with potential for continued, solid 
growth, and for companies participating in the trade mission, immediate 
market results. We see the best opportunities in plastic-injection 
molding and metal-mechanics, used by the electrical and electronics, 
aerospace, automotive, and consumer durables industries.

Information and Communications Technology (ICT)

    ICT development is one of the core objectives of Mexican President 
Pe[ntilde]a Nieto's Administration and improved competition in 
telecommunications and information technologies will drive demand for 
core network and other infrastructure solutions.
Telecommunications Equipment and Services
    The recently enacted telecommunications reform includes three 
components that will create numerous opportunities for U.S. ICT 
companies: Universal access to telecom services, accelerated 
competition, and strengthening of the telecom regulator. Projects 
stemming directly from the reform such as the mandated development of a 
national trunk network using the recaptured 700 MHz band, along with 
others resulting from enhanced competition, will generate demand for 
telecommunications infrastructure products and services. Greater 
broadband penetration, the development of a national mobile 4G network, 
a new L and Ku band satellite system for national security and civil 
communications, and government programs to promote digital literacy 
will in turn fuel demand for a wide array of telecommunications 
equipment and services. Telecom service providers will also see 
increased opportunities to enter the Mexican market as caps on foreign 
investment are removed from fixed telephony and satellite 
communications and as competition is enhanced in the wireless segment.

[[Page 48857]]

IT Products and Services
    The main opportunities for IT solutions (products and services) are 
in those sectors that are intensifying the use of IT, including: 
Healthcare, transportation, security, manufacturing, energy, retail and 
financial services. Both public and private organizations are good 
targets of for these opportunities.
    E-commerce between organizations and companies, either business to 
business (B2B) or government to business (G2B), has been developing 
much faster than e-commerce with consumers (B2C). Companies and the 
Mexican Government are investing heavily in their IT infrastructure to 
promote e-commerce between clients, suppliers, government, and 
individuals. Given that this market will grow in the future, there are 
great opportunities for suppliers of specialized and segmented 
solutions based on economic activity. The biggest market is enterprise 
solutions to help companies integrate and automate their communications 
within their organizations as well as with business partners (clients 
and suppliers).
    Government is the largest consumer of ICT in Mexico and is 
responsible for approximately 33% of the sales of large technology 
companies in the country. Opportunities in the public sector for 
eGovernment solutions and other technologies have been further enhanced 
by the Pe[ntilde]a Nieto Administration's focus on ICT. A division 
within the Office of the President is coordinating the development of a 
Mexican National Digital Strategy and Digital Government Program to 
align government ICT at federal, state, and municipal levels, as well 
as to enhance the government's digital interface with citizens in order 
to improve efficiency and transparency. Some of the strongest programs 
lie in the public safety, health, education and transportation sectors 
and include citizen access, digital platforms for procedures and 
services, asset management, database integration, and other IT 
services. Furthermore, government efforts--including potential policy 
initiatives--to improve digital literacy and increase the penetration 
of ICT at all levels of society and the economy, are originating 
programs to increase the population's access to technology and 
communications services, such as equipping schools in remote locations 
with tablets and computers.
    In the private sector, the IT services market continues to show 
great opportunities in all types and sizes of organizations. Mexico is 
an attractive market for U.S. technology products in the IT services 
industry and is also developing strong IT clusters that offer software 
development, call center, data center, high-tech manufacturing and 
engineering services. Alongside a strong economy, these trends create 
demand and partnership opportunities for U.S. companies offering 
business and data management, data center, business intelligence and 
business process solutions.

 Health IT and Medical Devices

    The Mexican healthcare sector offers excellent opportunities for 
both Health IT and Medical Devices in both the public and private 
sectors.
Health IT
    The Mexican Health IT sector is an emerging market as healthcare 
institutions have begun identifying, seeking out and implementing 
technologies to become more efficient and competitive. Currently, the 
most popular IT applications include electronic health records (EHR), 
telemedicine, patient control, electronic filing, supplies inventory 
control, pharmacy inventory and services management, and security 
systems. Potential clients for IT in Mexico's healthcare sector are 
mostly large public and private hospitals with resources to purchase 
sophisticated technologies to automate patient services, administrative 
processes and supplies control systems.
    In the public sector there are 1,578 hospitals of which, only 310 
have more than 120 beds. In the private sector, of the 3,140 hospitals, 
only 80 have over 50 beds. Most of these hospitals offer highly 
specialized healthcare services and are located in medium and large 
Mexican cities. There are also some medium-sized private hospitals that 
offer specialty services and focus on high income, insured patients.
Medical Devices
    U.S. medical products are highly regarded in Mexico due to their 
high quality, after sales service, and price point compared to 
competing products of similar quality. Consequently, U.S. medical 
equipment and instruments have a competitive advantage and are in high 
demand in Mexico.
    In 2012, total imports of medical equipment, instruments and other 
medical devices reached $4.3 billion. Of these imports 48%, or $2 
billion, were of U.S. origin. With the clarification and pronouncement 
of regulations for medical technologies, Mexico is expected to become 
an even more attractive market for U.S. companies.

Other Products and Services

    The foregoing analysis of export opportunities in Mexico is not 
intended to be exhaustive, but illustrative of the many opportunities 
available to U.S. businesses. Applications from companies selling 
products or services within the scope of this mission will be 
considered and evaluated by the United States Department of Commerce. 
Companies whose products or services do not fit the scope of the 
mission may contact their local United States 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 visit the Web site: http://www.export.gov to obtain such information.

Mission Goals

    This mission will demonstrate the United States' commitment to a 
sustained economic partnership with Mexico. The mission's purpose is to 
support the business development goals of U.S. firms as they construct 
a firm foundation for future business in Mexico and specifically aims 
to:
     Assist in identifying potential partners and strategies 
for U.S. companies to gain access to the Mexican market for the target 
industry products and services.
     Confirm U.S. government support for the promotion of U.S. 
exports to Mexico and activities of U.S. business in Mexico, including 
advocacy for major projects, and provide access to senior Mexican 
government decision makers.
     Listen to the needs, suggestions and experience of 
individual participants so as to shape appropriate U.S. government 
positions regarding U.S. business interests in Mexico.
     Organize private and focused events with local business 
and association leaders capable of becoming partners and clients for 
U.S. firms as they develop their business in Mexico.

Mission Scenario

    The mission will stop in Mexico City and Monterrey, Mexico. In each 
city, participants will meet with pre-screened potential agents, 
distributors, and representatives, as well as other business partners 
and government officials. They will also attend market briefings by 
United States Embassy officials, as well as networking events offering 
further opportunities to speak with local business and industry 
decision-makers.

[[Page 48858]]



                           Proposed Time Table
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Monday, November 18, 2013.......  Mexico City.......  Orientation.
                                                      U.S. Government
                                                       Trade Finance
                                                       Programs
                                                       Briefing.
                                                      Commercial
                                                       Opportunity
                                                       Overview.
                                                      Welcome Dinner.
Tuesday, November 19, 2013......  Mexico City.......  Industry Briefings/
                                                       Roundtable
                                                       Discussions.
                                                      Individual Company
                                                       Business
                                                       Appointments.
                                                      Government
                                                       Meetings.
                                                      Networking
                                                       Reception.
Wednesday, November 20, 2013....  Mexico City.......  Industry Briefings/
                                                       Roundtable
                                                       Discussions.
                                                      Individual Company
                                                       Business
                                                       Appointments.
                                                      Government
                                                       Meetings.
                                  Monterrey.........  Travel to
                                                       Monterrey.
                                                      Working Dinner.
Thursday, November 21, 2013.....  Monterrey.........  Commercial
                                                       Opportunity
                                                       Overview.
                                                      Industry Briefings/
                                                       Roundtable
                                                       Discussions.
                                                      Individual Company
                                                       Business
                                                       Appointments.
                                                      Government
                                                       Meetings.
                                                      Networking
                                                       Reception.
Friday, November 22, 2013.......  Monterrey.........  Government
                                                       Meetings.
                                                      Individual Company
                                                       Business
                                                       Appointments.
                                                      Government
                                                       Meetings.
                                                      Wrap-up
                                                       Discussion.
                                                      Closing Dinner.
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Participation Requirements

    All parties interested in participating in the Secretarial Business 
Development Mission to Mexico 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. Approximately 20-25 
companies will be selected to participate in the mission from the 
applicant pool. U.S. companies doing business in Mexico, as well as 
U.S. companies seeking to enter the Mexican 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 fee schedule for the mission is below:
     $9,600 for large firms
     $8,000 for a small or medium-sized enterprises (SMEs) \1\
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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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     $2,500 each additional firm representative (large firm or 
SME)
    The cost of the flight from Mexico City to Monterrey is included in 
the participation fee. Expenses for all other air travel, lodging, some 
meals, and incidentals will be the responsibility of each mission 
participant.

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 goods and/or services it seeks to export 
through the mission are either produced in the United States, or, if 
not, contain at least 51% U.S. content. If the applicant is unable to 
make this certification, the applicant must explain the nature of the 
goods and/or services to be promoted and business opportunities to be 
pursued through participation on the mission. The applicant must 
further specify how the promotion and pursuit of those business 
opportunities will further the mission goals identified above, 
especially how those business opportunities expand U.S. exports or 
otherwise benefit the U.S. economy.
     Certify that the export of the products and services that 
it wishes to export 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 the Department 
of Commerce 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: Selection will be based on 
the following criteria, listed in decreasing order of importance:
     Suitability of a company's products or services to the 
Mexican market and the likelihood of a participating company's 
increased exports to or business interests in the target markets as a 
result of this mission;
     Demonstrated export experience in the Mexico and/or other 
foreign markets or explanation of export-readiness;
     Consistency of company's products or services with the 
scope and desired outcome of the mission's goals;
     Current or pending major project participation; and
     Rank/seniority of the designated company representative.
    Additional factors, such as diversity of company size, type, 
location, and demographics, may also be considered during the review 
process.

[[Page 48859]]

    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 (http://www.gpoaccess.gov/fr), posting on ITA's business development mission 
calendar (http://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 will begin immediately and conclude no later than 
Friday, September 13, 2013. The Department of Commerce will evaluate 
applications and inform applicants of selection decisions as soon as 
they are made. Applications received after the September 13th deadline 
will be considered only if space and scheduling constraints permit.
    How to Apply:
    Applications can be completed online or downloaded from the 
business development mission Web site (http://export.gov/MexicoMission2013). You may also request an application by contacting 
the Office of Business Liaison.
    Contacts:
    General Information and Applications: The Office of Business 
Liaison, 1401 Constitution Avenue NW., Room 5062, Washington, DC 20230, 
Tel: 202-482-1360, Fax: 202-482-4054, Email: [email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-19391 Filed 8-9-13; 8:45 am]
BILLING CODE 3510-FP-P