Secretary Daley's Trade Mission To The Middle East

DEPARTMENT OF COMMERCE

International Trade Administration

Secretary Daley's Trade Mission To The Middle East

AGENCY: International Trade Administration, Commerce.

ACTION: Notice of trade mission to the Middle East.

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SUMMARY: This notice serves to inform the public of a Secretarial Trade

Mission to the Middle East, October 9-18, 1999, and of the opportunity

to apply for participation in the mission; sets forth objectives,

procedures, and participation criteria for the mission; and requests

applications.

DATES: Applications should be submitted to Lucie Naphin by August 18,

1999, in order to ensure sufficient time to obtain in-country

appointments for applicants selected to participate in the mission.

Applications received after that date will be considered only if space

and scheduling constraints permit. The mission is scheduled to travel

to Egypt, Israel, the West Bank, Jordan, Saudi Arabia, and the United

Arab Emirates.

ADDRESSES: Request for and submission of applications--Applications are

available from Lucie Naphin, Director of the office of Business

Liaison, at (202) 482-1360 or via facsimile at (202) 482-4054. Numbers

listed in this notice are not toll-free. An original and two copies of

the required application materials should be sent to Ms. Naphin.

Applications sent by facsimile must be immediately followed by

submission of the original application to Ms. Naphin at the following

address: Office of Business Liaison, Room 5062, U.S. Department of

Commerce, 14th Street and Constitution Ave, N.W. Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Lucie Naphin at (202) 482-1360.

Information is also available via the International Trade

Administration's (ITA) Internet home page at: ``http://www.ita.doc.gov'

SUPPLEMENTARY INFORMATION:

Trade Mission Description

Secretary of Commerce William M. Daley will lead two trade missions

to the Middle East in October, 1999. He will lead a business

development mission to Egypt, Israel, Gaza/West Bank, and Jordan

October 9-15, 1999 and a business development mission to Saudi Arabia

and the United Arab Emirates (U.A.E.) October 15-18, 1999.

Egypt, Israel, Gaza/West Bank, and Jordan

In Jordan, Israel, Gaza/West Bank, and Egypt, the focus of the

mission will be on commercial opportunities presented by the

liberalization of these countries' economies and the privatization of

key industry sectors. The delegation will include 10-15 U.S. company

executives of large, medium and small firms representing the following

key sectors: information technology, including computer hardware,

software development, and telecommunications; energy; environmental

technologies; agribusiness, including food processing and fertilizers;

health care; tourism, including hotel construction and management; and

insurance and banking.

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This mission will reaffirm the U.S. Government's support for the

commercial aspects of the peace process, a top foreign and commercial

priority.

Saudi Arabia and the United Arab Emirates

In Saudi Arabia and the U.A.E., the focus of the mission will also

be on commercial opportunities presented by the liberalization of these

countries' economies and the privatization of key industry sectors. The

delegation will include 10-15 U.S. company executives of large, medium

and small firms representing the following key sectors of: energy,

including power generation, and oil and gas exploration and

development; information technology, including computer hardware,

software development, and telecommunications; environmental

technologies; agribusiness; and health care.

This mission will include advocacy for major commercial projects,

including the recent interest expressed by Saudi Crown Prince Abdullah

in attracting greater U.S. private sector participation in the Saudi

energy sector.

Timetable

The mission will depart Washington on October 8. A delegation will

visit Jordan, Israel, Gaza/West Bank, and Egypt October 9-15, and a

second delegation will visit Saudi Arabia and the U.A.E. October 15-18.

Commercial Setting

Egypt, Israel, Gaza/West Bank, and Jordan

The Government of Egypt has embarked on a significant economic

reform program which has made Egypt an attractive emerging market.

Egypt plans to privatize much of its power sector, roads, airports,

ports, cement companies, and water supply. Egypt has also passed

legislation allowing 100 percent foreign ownership of banks and

insurance companies. Egypt is seeking U.S. firms for the mobile phone

market. Egypt is also interested in U.S. environmental and agricultural

export technologies. An increasing number of American firms are looking

at Egypt for possible exports and to establish their regional marketing

and manufacturing centers there. Egypt is our third largest market in

the Middle East with exports totaling $3 billion in 1998.

As our second largest market in the Middle East, Israel offers

major export and investment opportunities in environmental

technologies, information technologies, and the medical field. Israel

has the highest number of high-technology start-ups per capita in the

world, and is seeking joint ventures with U.S. firms; eight U.S. state

governments have offices in Israel to take advantages of these

opportunities. U.S. exports to Israel in 1998 were valued at $7

billion.

Gaza/West Bank benefits from the Duty Free Proclamation, which

allows U.S. products to be traded free of tariffs with the Palestinian

Authority. U.S. firms also have the opportunity to use industrial

facilities at the newly launched industrial park, the Gaza Industrial

Estate. The Palestinian business community has long sought to encourage

greater U.S. private sector participation in their market, and is eager

to serve as agents and distributors for, as well as joint venture

partners with, American firms. Telecommunications, tourism, and

franchising in a wide range of areas, including food and office

products, are particularly promising sectors for U.S. business.

The Jordanian Government has made new commitments to privatize key

industries, including telecommunications. The Government has also

recently announced that the Aqaba railway will be privatized by a

consortium, led by U.S. companies. Moreover, the United States, Jordan,

and Israel have instituted several Qualifying Industrial Zones in

Jordan, which allow goods to enter the United States free of duties and

quotas on a reciprocal basis. The U.S. Government also has a number of

aid programs in Jordan that offer export opportunities to U.S.

companies in infrastructure and environmental technologies.

Saudi Arabia and the United Arab Emirates

Saudi Arabia is the largest U.S. market in the Middle East, with

$10.5 billion in exports in 1998. Recent increases in oil prices have

improved the Saudis' ability to purchase goods and services. Saudi

Arabia is particularly interested in U.S. firms in energy,

telecommunications, environmental technologies, and medical services

and equipment. Saudi Arabia is moving forward to develop much of its

natural gas potential for the first time.

The United Arab Emirates, which has made great strides in

diversifying its economy, represents a booming economy. The U.A.E. is

interested in environmental technologies, medical fields, and

telecommunications, among other sectors. Last year, the U.A.E. imported

$2.4 billion in U.S. products. In 1997, Secretary Daley visited Abu

Dhabi and Dubai in the U.A.E. following his participation in the Middle

East/North Africa Economic Conference in Doha, Qatar.

New commercial opportunities will develop as a result of growing

interest in privatization, which is already occurring in the U.A.E.'s

power sector and is proposed for the same sector in Saudi Arabia, as

well as additional sectors in both countries. In addition, expanding

private sector opportunities is a major emphasis of the U.S.-Gulf

Cooperation Council Economic Dialogue and the policies of those two key

members of the GCC.

Goals for the Missions

The Secretary's missions to the Middle East will advance specific

business interests of the mission members by introducing them to key

host government decisionmaking officials and to potential business

partners. U.S. companies participating on the missions who are already

established in the region will increase their visibility, and new-to-

market firms will be able to gain a foothold in these very competitive

markets. In addition, the Secretary will support the U.S. Government's

efforts to reduce market access problems encountered by American firms

in these markets.

The Secretary also will encourage continued progress in economic

reforms in each of these stops. These reforms have been the focus of

the Gore-Mubarak Economic Partnership, the U.S.-GCC Economic Dialogue,

the U.S.-Jordanian Bilateral Economic Committee, and the U.S.-

Palestinian Bilateral Committee. The Secretary will also co-chair the

semi-annual meeting of the U.S.-Israel Science and Technology

Commission.

Mission Scenarios

At each stop, American Embassy officials will provide a detailed

briefing on the economic and commercial climate, and the status of

regional economic and commercial cooperation. Meetings will be arranged

with appropriate government ministers and other senior level government

officials. In addition, private meetings will be scheduled with

potential buyers, agents/distributors, and/or joint venture or

investment partners.

The Secretary will meet with senior government officials as well as

his trade counterparts to encourage free market reforms beneficial to

the U.S. private sector. The Secretary will also urge host government

officials to eliminate market access problems encountered by American

firms and to take steps to liberalize their trade and investment

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regimes. He will also meet with resident American business

representatives.

Criteria for Participation of Companies

The recruitment and selection of private sector participants for

these missions will be conducted according to the Statement of Policy

governing Department of Commerce-led trade missions announced by

Secretary Daley on March 3, 1997. Participants will be selected

separately for each mission and applicants should complete and submit

an application for each mission. Approximately 10-15 companies will be

selected for each mission. Companies may apply for the one or both of

the missions. Selection for one mission does not confer priority for

selection for the other mission.

Eligibility

Participating companies must be incorporated in the United States.

A company is eligible to participate only if the products and/or

services that it will promote (a) are manufactured or produced in the

United States; or (b) if manufactured or produced outside the United

States, are 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. (At the discretion of the Department, which will

generally be exercised on a mission-specific and sector-by-sector

basis, the 51 percent U.S. content requirement may be modified or

waived.)

Selection Criteria

Companies will be selected for participation on each mission on the

basis of:

--Level of seniority of designated company representatives and

appropriateness of the company to the mission objectives;

--Relevance of a company's business and product line to the sectors

identified below;

--Past, present, and prospective business activity in the region; and

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

traditional under-representation in business.

In addition, the Department may consider whether the company's

overall business objectives, including those of any U.S. or overseas

affiliates, are fully consistent with the mission's foreign and

commercial policy objectives.

Companies for the Egypt, Israel, Gaza/West Bank, and Jordan

business development mission will be drawn from several sectors

including, but not limited to:

--Information technology, including computer hardware, software

development, and telecommunications;

--Environmental technologies, including waste treatment and water

development;

--Agribusiness and food processing, farm machinery, fertilizers;

--Tourism, including hotel construction and management, resort

development, and entertainment;

--Insurance and banking;

--Medical services and equipment; and

--Franchising.

Companies for the Saudi Arabia and United Arab Emirates business

development mission will be drawn from several sectors, including, but

not limited to:

--Energy, including power generation, and oil and gas exploration and

development;

--Information technology, including computer hardware, software

development, and telecommunications;

--Environmental technologies;

--Agribusiness; and

--Medical services and equipment.

An applicant's partisan political activities (including political

contributions) are irrelevant to the selection process.

Time Frame For Applications

Applications for the Middle East trade missions will be made

available beginning on or about July 13, 1999. Companies/participants

may apply to one or both trade missions, however, separate applications

will be required for each trade mission. The fees to participate in

these missions have not yet been determined. The fees will not cover

travel or lodging expenses. For additional information on these trade

missions or to obtain an application for either or both, business

persons should be referred to Lucie Naphin, Director of the Office of

Business Liaison, or Jennifer Andberg, Office of Business Liaison, at

202-482-1360. Applications should be submitted to Lucie Naphin by

August 18, 1999, in order to ensure sufficient time to obtain in-

country appointments for applicants selected to participate in the

mission. Applications received after that date will be considered only

if space and scheduling constraints permit.

Authority: 15 U.S.C. 1512.

Dated: July 7, 1999.

Thomas Parker,

Director, Office of the Near East, International Trade Administration,

Department of Commerce.

[FR Doc. 99-17742 Filed 7-12-99; 8:45 am]

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