[Federal Register Volume 79, Number 86 (Monday, May 5, 2014)]
[Notices]
[Pages 25576-25580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10205]


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DEPARTMENT OF COMMERCE

International Trade Administration


Safety and Security Business Development Mission to Morocco, 
Algeria and Egypt; March 4-12, 2015

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration is organizing an Executive-led Business Development 
Mission to Morocco, Algeria and Egypt with an optional stop in Lebanon, 
March 4-12, 2015. The purpose of this mission is to help U.S. firms in 
the safety and security industry find business partners and sell 
products and services in North Africa. The targeted sector for 
participation in this Business Development Mission is safety and 
security, including U.S.-based manufacturers of safety and security 
equipment, U.S. based providers of safety and security services, and 
U.S. trade associations promoting U.S. safety and security products and 
services.
    The mission will include stops in Rabat and Casablanca, Morocco; 
Algiers, Algeria; and Cairo, Egypt, where participants will receive 
market briefings and participate in customized meetings with key 
officials and prospective partners. There will be an optional stop in 
Beirut, Lebanon. The mission supports President Obama's National Export 
Initiative (NEI) to strengthen the U.S. economy and U.S. 
competitiveness through meaningful job creation. The mission will help 
U.S. companies already doing business in Morocco, Algeria and Egypt 
increase their footprint and deepen their business interests.
    The mission will help participating firms and associations gain 
market insights, make industry contacts, solidify business strategies, 
and advance specific projects, with the goal of increasing U.S. exports 
of products and services to Morocco, Algeria and Egypt. 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 an official U.S. 
industry delegation, rather than traveling to Morocco, Algeria and 
Egypt on their own, will enhance the companies' ability to secure 
meetings in Morocco, Algeria and Egypt.
    All safety and security companies, including U.S.-based 
manufacturers of safety and security equipment, U.S. based providers of 
safety and security services, and U.S. trade associations promoting 
U.S. products and services in the safety and security sector, are 
encouraged to apply.

Commercial Overview

    U.S. companies specializing in safety and security technologies and 
solutions will find burgeoning opportunities in North Africa, 
particularly in Morocco, Algeria, and Egypt. These countries represent 
the top three export markets for U.S. companies in North Africa. 
Morocco, Algeria and Egypt also have a wide variety of critical 
tourism, logistics, transportation, and energy infrastructure platforms 
and assets that are essential for ongoing economic growth and stability 
which must be protected. All three markets also maintain long, remote 
borders, where arms, illicit goods trading and terrorist and criminal 
elements have been known to pass with relative ease, which in light of 
ongoing instability in the region, have dramatically increased the need 
and interest by all three governments in a wide variety of U.S. border 
monitoring and protection solutions, equipment, and expertise.
    Long standing and close bilateral cooperation between the U.S. 
Government and the governments of Morocco, Algeria and Egypt in a 
number of areas including drug trafficking, terrorism, international 
crime, and defense set a positive tone and provide a strong foundation 
upon which U.S. safety and security sector firms can find commercial 
success.
    The Government of Morocco, for instance, works closely with the 
U.S. Government in customs and port security, defense cooperation, and 
drug trafficking. As the country aspires to become the region's leading 
manufacturing and re-export hub between Europe and West Africa, 
Moroccan agencies increasingly seek protection solutions for the Tanger 
Med port, railways, and ports. As a major international tourism 
destination, Morocco's economy greatly depends on hard currency derived 
from the tourism industry and therefore the government is constantly 
seeking upgrades to immigration processing, luggage handling, bomb 
detection and intrusion prevention solutions for tourism facilities 
throughout the country.
    Algeria, a country which is all too familiar with internal unrest 
and terrorism, is ever vigilant in controlling internal terrorist 
elements and cross border security threats, and in light of the deadly 
In Amenas terrorist attack on a remote drilling site in the south of 
the country in January 2013, the country is extremely cognizant of the 
ongoing threats to its extensive oil and gas field infrastructure. U.S. 
safety and security firms have historically done very well in the 
Algerian market despite the country's overall gravitation towards 
Europe, and Algeria is keen on procuring new, cutting edge U.S. 
solutions.
    Egypt likewise expects to witness an increase in demand for safety 
and security products and services over the next few years. The 
Egyptian government has set an objective to dramatically enhance its 
safety measures, which will require security upgrades of all the 
airports, seaports, and public facilities. The Ministry of Interior is 
doing its best to create new horizons for investment in security 
technology within the Egyptian market and companies with a reputation 
for cutting-edge technologies will have an advantage.
    The Business Development Mission will include one-on-one business 
appointments with pre-screened potential buyers, agents, distributors 
and joint venture partners; meetings with national and regional 
government officials, chambers of commerce, and business groups; and 
networking receptions for companies interested in expansion into the 
North African markets. Meetings will be offered with government 
authorities that can address questions about policies, tariff rates, 
incentives, regulation, etc.

Commercial Setting in Morocco, Algeria and Egypt

Morocco

    Strategically located along the Strait of Gibraltar just a seven-
hour flight from JFK and three hours from Paris,

[[Page 25577]]

Morocco is seen more and more as a regional hub in North West Africa 
for transportation and business. Morocco's moderate Mediterranean 
climate and its developing infrastructure make it an attractive 
location for business and leisure. Morocco's Association Agreement and 
Advanced Status with the European Union (EU) have spurred manufacturing 
development in Morocco, an activity that has also been heightened by 
the U.S.-Morocco Free Trade Agreement (FTA). The U.S.-Morocco FTA is 
one of the most comprehensive free trade agreements that the U.S. has 
ever negotiated. The FTA provides U.S. exporters increased access to 
the Moroccan market by eliminating tariffs on more than 95% of consumer 
and industrial goods. It helps to level the playing field with European 
competition and provides enhanced protection for U.S. intellectual 
property. Moroccan officials have stated their view that the FTA is a 
catalyst to accelerate and reinforce the country's economic reform 
process by allowing greater competition and the formation of 
international partnerships in key sectors such as insurance and 
banking, and by greatly liberalizing the Moroccan textile and 
agricultural tariff structures.
    U.S. safety and security firms will enjoy significant opportunities 
in Morocco. The country has successfully maintained internal security 
in a region where Arab Spring revolts have resulted in unprecedented 
instability, and the government's highest priority is protecting its 
people, economy and political system from terrorist and criminal 
elements in the wider neighborhood. Morocco's geographic location as a 
gateway to Europe also requires the protection of borders and 
checkpoints against illegal immigration, human trafficking and 
narcotics. Customs and ports agreements with the United States and 
other countries require Morocco to implement major upgrades at 
airports, seaports, border crossings, and government buildings.
    The Moroccan market for safety and security equipment and services 
is expected to increase by 20% in the next five years. Local production 
is nonexistent and therefore imported safety and security products 
supply nearly 95% of the entire market, which until recently, was 
dominated by European firms. Morocco's implementation of an ambitious 
infrastructure development plan that includes ports, airports, 
hospitals, power plants, and new logistics platforms increases sales 
opportunities for U.S. safety and security equipment and expertise. In 
addition, as Morocco depends on international tourism for economic 
growth, hotels and various tourism facilities provide constant 
opportunities for U.S. firms in this sector, and the current Open Skies 
Agreements with European Union and U.S. air space require continuous 
upgrades of safety and security equipment and procedures in airports. 
Moreover, the U.S.-Morocco Strategic Dialogue, initiated in 2012, has a 
considerable security component that builds on a long history of U.S.-
Morocco security and military cooperation.
    Specific opportunities for U.S. companies in Morocco include but 
are not limited to: All security and safety equipment and related 
solutions for seaports, airports, border crossings, security and safety 
agencies such as the police, and buildings; integrated monitoring and 
surveillance solutions; luggage screening devices; fire prevention and 
control equipment, alarm equipment for building safety, emergency 
evacuation systems; radio communication systems; and inspection 
equipment for containers and seaport cargo.

Algeria

    Algeria is the largest country in Africa and the Arab World with a 
total landmass of 2.38m sq. km. The country is rich in natural 
resources; an Organization of the Petroleum Exporting Countries member, 
Algeria has the tenth-largest reserves of natural gas in the world and 
is the sixth-largest gas exporter and ranks 16th in oil reserves. 
Thanks to strong hydrocarbon revenues, the government of Algeria has a 
cushion of $200 billion in foreign currency reserves and a large 
hydrocarbon stabilization fund. In addition, Algeria's external debt is 
extremely low at about 2% of GDP. Algeria is still largely unexplored 
and foreign firms are increasingly investing in joint ventures.
    The government is making efforts to diversify the economy by 
attracting foreign and domestic investment outside the energy sector. 
Public spending has increased by 27% annually during the past five 
years. Long-term economic challenges include diversification from 
hydrocarbons, relaxing state control of the economy, reducing 
bureaucracy and improving transparency, and providing adequate jobs for 
younger Algerians. The government launched an investment plan (2010-
14), and a $286 billion program for major infrastructure programs not 
only in safety & security equipment, but also transport, 
telecommunications, energy, and healthcare.
    Safety and security solutions have long constituted a pillar of 
U.S.-Algerian commercial ties. The Algerian government and society at 
large have witnessed major upheaval, revolt and instability over the 
past 25 years, most notably the black years of the 1990's when 200,000 
people were killed in government insurrection, reprisals and 
infighting. While the government has emerged mostly unscathed from 
regional Arab Spring revolts, elements exist in Algeria that could 
undermine the country's security situation. The In Amenas hostage 
crisis in southern Algeria in January 2013 where 39 foreign workers 
were killed is a case in point. The Algerian government is determined 
to combat terrorist and criminal forces throughout its expansive 
territory, and the U.S. Government enjoys a healthy working 
relationship with the Algerian Government in this effort.
    Algeria is a rich country which highly prioritizes safety and 
security solutions, and U.S. firms have had considerable ongoing 
success in this sector. In addition, Algeria has recently demonstrated 
over the past 2-3 years a tangible affinity for American solutions 
across the board. Opportunities in the safety and security sector in 
Algeria fall into the following prime categories: (a) Monitoring and 
protecting its expansive borders with Morocco, Mauritania, Mali, Niger, 
Libya and Tunisia; (b) Protecting thousands of miles of oil and natural 
gas pipelines and facilities throughout remote desert areas; (c) 
Protecting government buildings, infrastructure and major entry points 
into the country such as airports and seaports; and (d) Cyber 
monitoring technologies which have also become of significant interest 
to a variety of Algerian Government agencies.
    Opportunities for U.S. safety and security companies in Algeria 
include but are not limited to: Infrastructure protection solutions for 
seaports, airports, border crossings, security and safety agencies such 
as the police, and buildings; cyber security monitoring; fire 
prevention and control equipment, alarm equipment for building safety, 
emergency evacuation systems; radio communication systems; border 
surveillance and inspection technologies; forensic solutions; unmanned 
air vehicles (UAVs); and oil and gas pipeline security solutions.

Egypt

    With a population of over 85 million and a GDP of $219 billion the 
Egyptian economy is one of the largest in the Arab World, and the 
second largest in the Middle East and North Africa. The United States 
is Egypt's largest bilateral trading partner, and Egypt is the fourth

[[Page 25578]]

largest export market for U.S. products and services in the Middle 
East. In 2013, bilateral trade was $6.8 billion, reflecting a drop from 
2012 as a result of a decline in Egyptian exports. Egypt is a 
significant importer of American agricultural commodities, machinery, 
and equipment. U.S. firms will find business opportunities in energy, 
transportation, healthcare, IT & telecommunications, and agribusiness. 
The GOE has also announced the construction of new water plants in 
Upper Egypt has part of the upgrading of this region. Tourism, as the 
largest earner of foreign exchange and employer of more than 10% of 
Egyptian workers, also offers strong possibilities. Expansions among 
the Red Sea resorts provide increasing opportunities for exporters of 
hotel equipment and environmental management services. Airports and 
other infrastructure being built to serve the new resorts also offer 
excellent prospects for U.S. exporters and investors. Tourism along the 
Red Sea coast continues to grow, and the government is advocating 
development along the Mediterranean coast as well. These opportunities 
continue to attract U.S. project management expertise, building systems 
and equipment.
    Egypt possesses the fundamentals to become a business hub in North 
Africa and the Middle East: Great geographic location linking two 
continents, and abundance in young skilled human resources. In January 
2014, Egypt's constitution was ratified by a majority through a 
referendum. Presidential elections are expected by early summer 2014 
and parliamentary elections will follow shortly thereafter. Public and 
private sector representatives believe that a permanent government will 
serve as a catalyst for economic activity.
    The safety and security industry is booming throughout Egypt as the 
country deals with increased security issues ranging from private 
citizen safety to transaction fraud. Safety and security imports to 
Egypt have increased 10-15% annually for the past few years and U.S. 
brands are well received. This is primarily a government market, 
dominated by the Ministry of Interior and Ministry of Defense, though 
both government and the private sector are reevaluating and upgrading 
security systems and technologies at all sites. The government of Egypt 
has set an objective to dramatically enhance its safety measures, which 
will require security upgrades of all the airports, seaports, and 
public facilities. The overall imports required were estimated at about 
$305 million in 2013. The U.S. market share is about 25% (non-
governmental).
    As the country works to increase tourism over the next few years, 
airports and seaports will need upgraded security systems. Police and 
customs authorities will also have an increased need for such systems. 
Egypt has eight major ports and three cross-country borders that 
require significant security measures. In its fight against drug 
smuggling and counterfeit products, Egypt requires container scanning 
and shipment tracking devices. Egypt is also looking at container 
scanning upgrades and seafarer identification cards for more secure 
identification and synchronizing systems to coordinate security 
measures and responses. Accordingly, opportunities exist for U.S firms 
providing short-range radar systems, surveillance cameras, infrared and 
radiological detectors, vessel tracking MIS, biometric scanners, 
personnel databases, computer peripherals, and systems integration 
equipment.
    Specific opportunities for U.S. companies in Egypt include but are 
not limited to: Search and rescue equipment, access control & alarm 
systems, CCTV and electronic surveillance equipment, walk through and 
handheld metal detectors, border and perimeter control, bomb detection 
equipment, uniforms, protective apparel & accessories (industrial) and 
x-ray and scanning equipment.

Optional Stop--Lebanon

    Lebanon has a population of 4.2 million and it was the 77th largest 
U.S. export market in 2013. Around 5% ($1 billion) of Lebanon's total 
imports came from the United States in 2013. Lebanon's economy follows 
a laissez-faire model; generally the economy is dollarized and capital 
moves freely across borders. However, Lebanon is challenged by a high 
level of public debt and large external financing needs. Impediments to 
foreign investment include arbitrary licensing decisions, complex 
customs procedures, an ineffectual judicial system, high taxes & fees, 
unreliable internet services, and a lack of adequate intellectual 
property protection. Moreover, domestic tension and political and 
security instability, largely due to spillover effects from the Syrian 
crisis, are expected to continue.
    With the ongoing political and security instability in Lebanon and 
the increasing security threats as a result of the spillover from 
Syria, the country's demand for safety and security equipment remains 
high and is expected to grow steadily in the coming years. The safety 
and security market in Lebanon is very much dominated by government 
agencies which are represented by the Ministry of Interior, Ministry of 
Defense, Lebanese Armed Forces, Internal Security Forces, Surete 
Generale, Civil Defense Directorate, Lebanese Customs Authority, Beirut 
International Airport, Central Bank of Lebanon, Beirut Port and Civil 
Aviation Authority. The Ministry of Interior, which includes the 
Internal Security Forces and Surete Generale, is tasked with internal 
and border security responsibilities ranging from internal safety to 
drugs and weapons smuggling and illegal entry of foreigners to Lebanon. 
It is expected to launch a tender in the near future for an 
international bid for the production of biometric passports.
    Demand for safety and security equipment and services within the 
private sector is also high. Private sector entities include shopping 
malls, hotels, banks, universities and private security companies. They 
are always looking for the latest technology available in financial and 
network security, surveillance systems, robbery and burglary systems, 
alarm signaling equipment, safes and vaults, metal detectors, x-ray and 
handheld scanners and fire protection systems.
    Although Lebanon is a price sensitive market, quality is an 
important factor, particularly in safety and security equipment. U.S. 
products face strong competition from Chinese, Japanese, British, 
German, Italian and French products. East Asian products also compete 
strongly in the commercial and household sectors. However, the 
increasing demand for high-quality security equipment and services 
gives a big advantage to American companies, which enjoy an excellent 
reputation in Lebanon due to their high reliability.

Other Products and Services

    The foregoing analysis of the safety and security opportunities in 
Morocco, Algeria and Egypt 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, but not specifically identified, 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 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

[[Page 25579]]

be found on the Web site: http://www.export.gov.

Mission Goals

    The purpose of this trade mission is to introduce U.S. firms to the 
rapidly expanding market for safety and security products and services 
in Morocco, Algeria and Egypt. The mission will help participating 
firms and trade associations gain market insights, make industry 
contacts, solidify business strategies, and advance specific projects, 
with the goal of increasing U.S. exports to Morocco, Algeria and Egypt.

                           Proposed Timetable
------------------------------------------------------------------------
             Date                     Day                Activity
------------------------------------------------------------------------
March 3, 2015................  Tuesday--Rabat...  Suggested Arrival
                                                   Rabat.
March 4, 2015................  Wednesday--Rabat.  Mission Meetings
                                                   Officially Start;
                                                   Country briefing with
                                                   U.S. Embassy staff;
                                                   Networking Reception.
March 5, 2015................  Thursday--Rabat/   Government meetings;
                                Casablanca.        Late afternoon travel
                                                   to Casablanca;
                                                   Networking Reception.
March 6, 2015................  Friday--Casablanc  Business meetings.
                                a.
March 7, 2015................  Saturday--Casabla  Travel to Algeria.
                                nca/Algiers.
March 8, 2015................  Sunday--Algiers..  Country briefing with
                                                   U.S. Embassy staff;
                                                   Government meetings;
                                                   Networking Reception.
March 9, 2015................  Monday--Algiers..  Business meetings.
March 10, 2015...............  Tuesday--Algiers/  Travel to Cairo.
                                Cairo.
March 11, 2015...............  Wednesday--Cairo.  Country briefing with
                                                   U.S. Embassy staff;
                                                   Business meetings;
                                                   Networking Reception.
March 12, 2015...............  Thursday--Cairo/   Government Meetings;
                                Lebanon            Mission ends; Dinner
                                (optional).        on the Nile River
                                                   (optional); Travel to
                                                   Lebanon (optional).
March 13, 2015...............  Friday--Beirut     Country briefing with
                                (optional).        U.S. Embassy staff;
                                                   Business and
                                                   Government meetings;
                                                   Networking Event;
                                                   Lebanon add-on
                                                   concludes.
------------------------------------------------------------------------

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
DOC. All applicants will be evaluated, on a rolling basis, on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 15 and maximum of 20 firms 
and/or trade associations will be selected to participate in the 
mission from the applicant pool.

Fees and Expenses

    After a firm or trade association 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 for the Business 
Development Mission will be $3,300.00 for small or medium-sized 
enterprises (SME) \1\ and trade associations; and $5,000.00 for large 
firms or trade associations. The fee for each additional firm 
representative (large firm or SME/trade organization) is $750. A 
minimum of one company and a maximum of five companies can participate 
in the optional stop to Lebanon. The fee for the optional stop in 
Lebanon is $700 for an SME and $1300 for a large company. Expenses for 
travel, lodging, meals, and incidentals will be the responsibility of 
each mission participant. Interpreter and driver services can be 
arranged for additional cost. Delegation members will be able to take 
advantage of U.S. Embassy rates for hotel rooms.
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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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Exclusions

    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation, and air 
transportation from the U.S. to the mission sites, between mission 
sites, and return to the United States. 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

    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.
    Companies must provide certification of products and/or services 
being manufactured or produced in the United States or if manufactured/
produced outside of the United States, the product and/or service is 
marketed under the name of a U.S. firm and have U.S. content 
representing at least 51 percent of the value of the finished good or 
service. In the case of a trade association or trade organization, the 
applicant must certify that, for each company to be represented by the 
trade association or trade organization, the products and services the 
represented company seeks to export 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.
    The following criteria will be evaluated in selecting participants:
     Suitability of the company's (or in the case of a trade 
association/organization, represented companies') products or services 
to the mission goals and the markets to be visited as part of this 
trade mission.
     Company's (or in the case of a trade association/
organization, represented companies') potential for business in each of 
the markets to be visited as part of this trade mission.
     Consistency of the applicant's (or in the case of a trade 
association/organization, represented companies') goals and objectives 
with the stated scope of the mission.

[[Page 25580]]

    Diversity of company size and location may also be considered 
during the review process.
    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.

Timeline 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, notices by industry trade associations and other 
multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows. Recruitment for the mission will begin 
immediately and conclude on January 15, 2015. The U.S. Department of 
Commerce will review applications and make selection decisions on a 
rolling basis beginning September 1, 2014 until the maximum of 20 
participants is selected. Applications received after January 15, 2015, 
will be considered only if space and scheduling constraints permit.
    Contacts:

Frank Spector, Trade Missions Office, U.S. Department of Commerce, 
Washington, DC 20230, Tel: 202-482-2054, Fax: 202-482-9000, 
[email protected].
Ann Bacher, Regional Senior Commercial Officer, U.S. Embassy, Cairo, 
Egypt, Tel: +20-2-2797-2298, Fax: + 20-2-2795-8368, 
[email protected].
Paul Matino, Senior International Trade Specialist, Baltimore U.S. 
Export Assistance Center, Tel: 410-962-4539 Ext. 108, 
[email protected].

Frank Spector,
Lead International Trade Specialist.
[FR Doc. 2014-10205 Filed 5-2-14; 8:45 am]
BILLING CODE 3510-DR-P