Secretarial Business Development Mission to Turkey

DEPARTMENT OF COMMERCE

International Trade Administration

Secretarial Business Development Mission to Turkey

SUMMARY: Secretary of Commerce William M. Daley will lead a business

development mission to Turkey, one of Eurasia's most significant

emerging markets, to promote expanded trade opportunities, advocate for

U.S. business interests, advance significant commercial policy

objectives, and support the inaugural meeting of the U.S.-Turkey

Business Development Council.

This mission to one of the most rapidly growing Big Emerging

Markets will advance the Secretary's priorities on behalf of American

firms and workers, including: (1) Ensuring participation by U.S. firms

in major Turkish projects; (2) reducing/eliminating non-tariff barriers

to U.S. exports and investments; (3) securing compliance with trade

agreements, especially those related to international arbitration; (4)

advocating for acceptable terms for U.S. energy investment projects;

and (5) strengthening Turkish government officials and business

executives' favorable impression of U.S. technology, business practices

and companies.

The Secretary's mission will focus on the energy sector, with

particular

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emphasis on power equipment and services and will include U.S.

companies whose interests range from assessing opportunities in the

Turkish market to expanding existing business relationships. The

mission will begin in Ankara, the capital of Turkey, for meetings with

Government officials, Turkish business representatives and U.S.

companies currently active in Turkey. It will continue on to Istanbul.

A key focus of the mission will be to explore ways U.S. firms may put

their technologies and know-how to work in helping Turkey to execute

pending power development projects, which will total billions of

dollars. The mission also will seek to capitalize on opportunities in

other sectors for mutually-beneficial trade and investment.

DATES: January 19-21, 1998.

ADDRESSES: (none).

FOR FURTHER INFORMATION CONTACT: Applications may be submitted any time

after December 15th to Cheryl Bruner, Director of the Office of

Business Liaison, or Eric Schwerin at (202) 482-1360, fax (202) 482-

4054. All applications must be received by January 7, 1998.

Applications received after January 7th will be considered on a space

available basis.

SUPPLEMENTARY INFORMATION:

The Mission itinerary will be as follows:

January 18 (Sunday)--Mission arrival and orientation

January 19 (Monday)--Ankara

January 20 (Tuesday)--Ankara with departure for Istanbul

January 21 (Wednesday)--Istanbul--Mission concludes Wednesday evening

Overall Commercial Setting

Turkey, with its geographic relationship to Europe, the Middle East

and the southern tier of the Newly Independent States, is a natural Big

Emerging Market for U.S. business. Over the past decade, Turkey had the

highest average GNP growth rate of any OECD country. Its large

population, growing private sector, extensive infrastructure and

building requirements, and a government commitment to liberalize the

economy are expected to propel continued economic expansion into the

21st century.

Increased industrial and urban growth has created an overburdened

physical infrastructure, and the continuing stress of rapid

urbanization has generated a massive investment requirement to improve

living conditions. Increasingly, the Turkish government has encouraged

the local private sector and international investors to construct and

operate urgently needed energy, transportation, and environmental

infrastructure.

Privatization plans present significant opportunities for U.S.

firms. Successive Turkish governments have recognized that

privatization generates financial resources, reduces fiscal drain, and

improves economic efficiency. Electricity generation, transportation

and petroleum refining and distribution are among the sectors offering

such opportunities.

Energy, Power Equipment and Services Commercial Setting

Recent legislative changes and the formation of a new centrist

government may be opening the way for rapid private power development.

This situation has led to the following developments which should

create a strong equipment and services market in Turkey:

The Turkish national power company held a tender for five

new power plants with 5200 MW of capacity on a Build-Operate basis, at

an estimated cost of $3.75 billion.

The Turkish power company has tendered the Transfer of

Operating Rights (TOR) for eight plants and announced the winning

bidders on October 17. Renovation investments in these plants could

amount to several hundred million dollars.

The Turkish distribution monopoly has issued a TOR for 25

local distribution systems, with awards expected shortly.

Turkish energy officials have informed energy companies

that they will tender seven additional new plants in 1998.

These opportunities exist alongside important tender, contract and

financing issues which often stand in the way of project realization.

It is hoped that the Secretary's mission can assist in the resolution

of such problems.

Goals for the Mission

Reaffirm U.S. Government commitment and support for Turkey's

program of privatization of state enterprises and heighten U.S. private

sector participation in Turkey's economic growth.

Increase sales of U.S. energy products and services to Turkey,

particularly in the power equipment and services sector, by exposing

representatives of qualified U.S. companies in the power equipment and

services sector to currently expanding opportunities brought about by

the construction of large new power plants, privatization of existing

plants and distribution networks, and renovation and modernization of

inefficient and environmentally-damaging plants. Increase sales of

other U.S. products and services to Turkey.

Seek resolution of outstanding bilateral commercial issues and

advocate U.S. interests regarding specific problems and opportunities

in certain key areas: (1) Power generation and energy; (2) economic

reforms; and (3) compliance with trade agreements, especially those

related to international arbitration.

Scenario for the Mission

The Secretary's business development mission will visit the capital

of Turkey, Ankara, and conclude in Istanbul. This mission will promote

Turkey as a key emerging market that warrants the attention of a wide

range of U.S. firms, from ready to export small or medium sized firms

to large firms exploring new business opportunities.

Mission recruitment of 8 to 10 enterprises will focus on the

energy, power equipment and services sectors. Mission recruitment will

also draw on commercial opportunities for goods and services resulting

from the privatization plans of the Turkish government and from other

opportunities for U.S. firms in Turkey.

In his meetings with officials of the Government of Turkey, the

Secretary will work to move our commercial dialogue forward,

identifying issues that still impede U.S. companies' ability to do

business in Turkey and encouraging steps to remove the obstacles. The

timing of the trip to coincide with the inaugural meeting of the U.S.-

Turkey Business Development Council will provide an exceptional venue

for advancing cooperation between the U.S. and Turkish private sectors.

The program for the mission will include:

Embassy/consulate briefings on the commercial/economic environment

Meetings with Turkish Government Officials

Meetings with Turkish enterprises and trade associations

Meetings with American business executives based in Turkey

Company Participation Will Be Determined on the Basis of

Status as U.S.-owned or U.S.-based company with capacity to deliver

relevant equipment or services to Turkey. The goods or services

provided must either be produced in the United States or, if not, must

be marketed in the name of a U.S. firm and have at least 51% U.S.

content in the value of the finished product or service. The

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company must not be owned or controlled, indirectly or directly by a

foreign government.

Consistency of the company's goals with the scope and desired

outcome of the mission as described herein.

Past, present and prospective business in Turkey.

Diversity of company size, type, location, demographics, and

traditional under-representation in business.

An applicant's partisan political activities (including political

contributions) are irrelevant to the selection process.

Other Trip Objectives and Events

In addition to the mission scenario described above, Secretary

Daley will also support the inaugural meeting in Ankara of the U.S.-

Turkey Business Development Council in order to establish an improved

bilateral business and government cooperation for expanding commercial,

trade and investment relations. The Secretary will seek to accomplish

several commercial policy objectives in bilateral government to

government meetings with Turkish officials in Ankara and with the press

and private sector in Istanbul. Our bilateral policy agenda includes

addressing IPR issues, investment barriers to U.S. companies, insuring

compliance with international arbitration agreements, regulatory issues

related to the privatization of telecommunications companies, Caspian

pipeline construction and supply issues, and investment policies

related to ``Build-Operate'' and ``Build, Operate Transfer.''

Dated: December 12, 1997.

Catherine Vial,

Acting Director, Energy Division/OEIM/BI/TD.

[FR Doc. 97-32966 Filed 12-17-97; 8:45 am]

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