# Secretarial Business Development Mission to Turkey > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A97-32966 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** December 18, 1997 - **Citation:** 62 FR 66339 ## Text 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 [[Page 66340]] 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 [[Page 66341]] 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] BILLING CODE 3510-DR-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-32966. Public record. Not legal advice.