U.S. Trade Mission to Asia in Conjunction With Trade Winds-Asia, The Philippines, Hong Kong, Korea, Japan and Taiwan, May 9-17, 2013, 71780-71782 [2012-29293]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 77, Number 233 (Tuesday, December 4, 2012)]
[Notices]
[Pages 71780-71782]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29293]


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DEPARTMENT OF COMMERCE

International Trade Administration


U.S. Trade Mission to Asia in Conjunction With Trade Winds--Asia, 
The Philippines, Hong Kong, Korea, Japan and Taiwan, May 9-17, 2013

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (CS) is organizing 
a trade mission to Asia, that will include the Trade Winds--Asia 
business forum in Seoul, Korea, May 2013. U.S. trade mission members 
will participate in the Trade Winds--Asia business forum in Seoul, 
Korea (which is also open to U.S. companies not participating in the 
trade mission). Trade mission participants may participate in their 
choice of mission stops. On the first leg of the trade mission, prior 
to the Korean trade mission stop, participants may choose to 
participate in a trade mission stop in either: The Philippines and/or 
Hong Kong. Trade mission participants may then choose to participate in 
a trade mission stop in Korea, during which trade mission participants 
may participate in the Trade Winds--Asia business forum. Following the 
trade mission stop in Seoul, Korea, trade mission participants may 
choose to participate in a trade mission stop in either: Japan and/or 
Taiwan.
    Each trade mission stop will include one-on-one business 
appointments with pre-screened potential buyers, agents, distributors 
and joint-venture partners, and networking events. Trade mission 
participants electing to participate in the Trade Winds--Asia business 
forum may attend regional and industry-specific sessions and 
consultations with CS Senior Commercial Officers based in Asia.
    This mission is open to U.S. companies and trade associations from 
a cross section of industries with growth potential in The Philippines, 
Hong Kong, Korea, Japan and Taiwan, including but not limited to: 
Aerospace and aviation, automotive electronics, computer services & 
software, consumer goods, defense industry equipment, food processing 
systems, education, electrical power systems, electronic components, 
energy (both new and renewable, entertainment and media, environmental 
technologies and services, financial services, franchising, healthcare 
& medical, hotel/restaurant equipment, housing products, industrial 
chemical, info. & comm. technology, information security services, 
logistics development, machine tools and equipment, medical equipment 
and pharmaceuticals, outbound travel and tourism, pet products, 
pleasure boats and accessories, pollution control equipment, port 
construction, retail, safety and security equipment, semiconductors, 
specialty chemicals, telecommunications equipment, transportation 
infrastructure, travel and tourism services.

Commercial Setting

Korea (Seoul)

    On March 15, 2012, the Korea-U.S. Free Trade Agreement (KORUS) went 
into force, becoming our nation's largest Free Trade Agreement (spell 
out) since NAFTA. The agreement has the potential to increase U.S. 
exports to Korea by approximately $10-12 billion, and it will be 
especially beneficial for U.S. small and medium enterprises (spell 
out).
    The amount of trade between, the U.S. and Korea exceeded $100 
billion for the first time ever. U.S. exports reached an all-time high 
of $43.5 billion and also increased 12% over 2010 levels.
    Korea is the United States' seventh-largest trading partner. The 
U.S. is the third-largest exporter to Korea, with a 9% market share. 
Key competitors include: China, with 16.8%; Japan, with 15.3%; and the 
EU (27 nations), with 10%. Since the EU had already implemented its FTA 
with Korea, U.S. firms will now be in a stronger competitive situation 
following KORUS implementation.
    Korea's projected 2012 GDP growth is forecasted at around 3.6%, but 
could come in slightly lower given global economic sluggishness. Its 
commercial banks maintain strong reserves, in case of a possible 
worldwide slowdown or difficulties within the Euro zone. Korea will 
continue to focus its development on key growth sectors. Patents and 
trademarks issued by the Korean Patent Office exceeded 362,000 filings 
in 2010. The increasing trend in local patent and trademark filings 
reflects the move toward more technology-intensive and capital-
intensive industries and services.
    Best market prospects for Korea include: The aerospace Industry, 
specialty chemicals; cosmetics; defense industry equipment; education 
services; new and renewable energy, entertainment and media, 
franchising; medical equipment and devices, pollution control 
equipment; semiconductors, and travel & tourism.

Taiwan (Taipei)

    With a population of 23 million, Taiwan is a thriving democracy, 
vibrant market economy, and a highly attractive export market, 
especially for U.S. firms. In 2011, Taiwan was ranked as the tenth-
largest trading partner in goods with the U.S., putting it ahead of 
markets such as India and Italy. It is also the sixth-largest 
agricultural market for the U.S., and the fifth-largest source of 
foreign students in U.S. higher education. Taiwan is the world's 
fourth-largest holder of foreign exchange reserves, with over $385 
billion in 2011. The Taiwan economy softened slightly after 2010, but 
still enjoyed 4% GDP growth in 2011. Unemployment has remained 
relatively low, and an appreciating currency makes U.S. goods and 
services attractive to Taiwan buyers.
    Taiwan's real GDP increased by 4% in 2011, and this growth was 
mainly driven by strong export growth and private-investment expansion. 
In addition, the tariff reductions and exemptions from the Economic 
Cooperation Framework Agreement (ECFA), which became effective on 
January 1, 2011, helped spur Taiwan's exports to China.
    However, Taiwan's export growth may be significantly impacted by 
the New Taiwan dollar's appreciation against the U.S. dollar. Local 
private consumption is expected to expand continuously as a result of 
the recent

[[Page 71781]]

economic recovery and low unemployment. Improving ties with China is 
expected to ease the current cross-strait and investment restrictions 
and encourage more foreign investments in Taiwan. With these changing 
factors, local officials forecast that economic growth for 2012 will be 
moderate, at an annual rate of about 3.91%.
    Taiwan's best prospect sectors for U.S. exports include information 
communications and technologies, safety and security equipment, 
renewable energy technologies, publishing services, education and 
training services, travel and tourism, electronic components, pet 
products, and medical devices and equipment.

Japan (Tokyo)

    Japan is the world's third largest economy, after the United States 
and China, with a GDP of roughly $5.9 trillion. Japan is our fourth 
largest export market, receiving $66.2 billion in goods and $47.6 
billion in services from the United States in 2011. Japan is also the 
second largest foreign investor in the United States, with more than 
$257 billion invested.
    Japan's economy is highly efficient and competitive and its 
reservoir of industrial leadership and technicians, well-educated and 
industrious work force, high savings and investment rates, and 
intensive promotion of industrial development and trade has produced a 
mature industrial economy. Japan has few natural resources, and trade 
helps the nation earn the foreign exchange needed to purchase raw 
materials for its economy. Tokyo alone forms the core of an urban area 
that boasts a total population of over 35 million, roughly equivalent 
to the New York and Los Angeles metropolitan areas combined, and 
accounts for about one-third of Japan's total GDP. Consumers are highly 
sophisticated and discerning and are on the vanguard of the latest 
technological developments, trends and fashions, while the rapidly 
aging population is creating demand for new and innovative solutions 
across all areas of the economy. All of this creates demand for high-
quality, innovative Made-in-USA goods and services. And with the 
continued strength of the Japanese yen against the U.S. dollar, 
American goods and services have never been more affordable for 
Japanese buyers. Best prospect sectors include: Aerospace, computer 
software, cosmetics/toiletries, education and corporate training, 
electronic components, medical equipment, pharmaceuticals, renewable 
energy, safety and security, soil remediation and engineering services, 
telecommunications equipment, and travel/tourism, along with hot new 
emerging sectors such as biotechnology, healthcare IT and 
nanotechnology.
    Most globally competitive American and international firms compete 
heavily in the Japanese market, and partner with Japanese firms 
worldwide. Savvy observers agree that an active engagement with the 
Japanese market remains critical to the success of American firms both 
large and small, whether in Japan, in other world markets, or even back 
home in the United States.

Hong Kong

    Hong Kong, a Special Administrative Region of the People's Republic 
of China (PRC) since its reversion in 1997, has proven resilient in 
past economic crises. Dominant and sustained drivers of economic growth 
include private consumption (retail), transportation and logistics, and 
business services, real estate development (bolstered by ongoing public 
infrastructure works), and tourism. Hong Kong has benefited from 
continued economic integration with mainland China's strong economy. In 
particular, Beijing's policy of opening its service sector and 
gradually expanding the scope of the offshore Renminbi (RMB--the PRC's 
currency) market in Hong Kong and the sustained high numbers of 
mainland Chinese visitors (28 million in 2011) have strengthened Hong 
Kong's economy.
    Hong Kong is an ideal platform for doing business in Asia, 
especially for mainland China. Hong Kong is a free port that does not 
levy any customs tariffs and has limited excise duties. Its strong rule 
of law and respect for property rights make it a strategic platform for 
U.S. companies, especially small- and medium-sized firms, seeking to do 
business in Asia. Hong Kong's statutory trade promotion body, the Trade 
Development Council, seized upon this unique positioning to create the 
Pacific Bridge Initiative in late 2010, the first such agreement with a 
foreign government affiliate explicitly supporting the United States.
    Hong Kong's businesses enjoy close links to mainland China and the 
rest of Asia. According to Hong Kong Government statistics, there are 
1,328 subsidiaries of U.S. parent companies in Hong Kong, making the 
United States the largest source of subsidiaries in Hong Kong. Among 
those U.S. subsidiaries, 840 are regional headquarters or regional 
offices. Hong Kong's key characteristics are its openness, and 
promotion of tourism, trade and investment.
    In 2011, U.S. exports to Hong Kong were $27.3 billion, which 
constituted 5.6% of Hong Kong's imports (2011) and ranked the territory 
as the U.S.'s 10th largest export market. Its major trading partners: 
Mainland China, United States, EU, Japan, and Taiwan. Hong Kong has 
world-class infrastructure; a free flow of information; no restrictions 
on inward or outward investment; no foreign-exchange controls; no 
nationality restrictions on corporate or sectoral ownership; a simple, 
low-tax regime; and is a global financial hub. In addition, Hong Kong 
citizens speak excellent English and the Hong Kong Dollar is pegged to 
the U.S. Dollar.

The Philippines (Manila)

    United States goods exports to the Philippines in 2011 were USD7.7 
billion, up 4.5% (USD330 million) from 2010, but down 12.3% from 2000. 
The top export categories (2-digit HS) in 2011 were: Electrical 
machinery, machinery, cereals (wheat), optic and medical instruments, 
and food waste and animal feed (soybean residues). U.S. service exports 
to the Philippines totaled USD2.2 billion in 2011.
    U.S. exports of agricultural products to the Philippines totaled 
USD2.1 billion in 2011, the 11th-largest U.S. Ag export market. Leading 
categories include: Wheat, soybean meal, dairy products, and red meats 
fresh/chilled/frozen.
    U.S. exports of private commercial services (i.e., excluding 
military and government) to the Philippines were USD2.2 billion in 2011 
(latest data available), 17% more than the 2009 level. The private-
services category (business, professional, and technical services) and 
travel category accounted for most of U.S. service exports in 2010.
    Philippine GDP growth slowed to 3.7% in 2011 following one-off 
factors in 2010 (election spending and heavy post-typhoon 
reconstruction); lower-than-targeted government expenditures; and 
adverse developments globally. The Government reverted to a deficit 
reduction path in 2011 after opting for higher deficits in 2008 to 2010 
to help support economic growth and generate employment. However, the 
Government spent significantly below target, contributing to the 
economy's weaker-than-expected expansion.

Mission Goals

    The goal of the Asia trade mission is to help participating firms 
gain market insights, make industry contacts, solidify business 
strategies, and advance specific projects, with the goal of increasing 
U.S. exports to Korea, Taiwan, Japan, Hong Kong and The Philippines. 
The delegation will have access to CS Senior Commercial Officers

[[Page 71782]]

and Commercial Specialists during the mission, learn about the many 
business opportunities in Asia, and gain first-hand market exposure. 
U.S. trade mission participants already doing business in Korea, 
Taiwan, Japan, Hong Kong and the Philippines will have opportunities to 
further advance business relationships and projects in those markets.

Scenario & Timetable

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May 9-10...............................  Trade Mission stops in Hong
                                          Kong and/or the Philippines
                                          (Choice of one stop).
May 11.................................  Travel Day to Korea.
May 13.................................  Korea: Asia Business Forum.
May 14-15..............................  Korea: Asia Business Forum,
                                          consultations with CS Senior
                                          Commercial Officers and Trade
                                          Mission one-on-one meetings
                                          (Schedule will vary among
                                          participating firms, depending
                                          on their needs and interests).
May 16-17..............................  Trade Mission stops in Japan
                                          and/or Taiwan (Choice of one
                                          stop).
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Participation Requirements

    All parties interested in participating in the U.S. and Foreign 
Commercial Service Trade Mission to Asia 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.
    A minimum of 65 companies and/or trade associations will be 
selected to participate in the mission from the applicant pool on a 
rolling basis. Additional delegates will be accepted based on available 
space. Each of the trade mission stops (Japan, Taiwan, Hong Kong, the 
Philippines) is designed for participation of a maximum of 30 
participants. U.S. companies and/or trade associations already doing 
business in, or seeking to enter Japan, Taiwan, Korea, Hong Kong and 
the Philippines for the first time may apply.

Fees and Expenses

    After a company has been selected to participate in the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required.
    For one mission stop, the participation fee will be $2,450 for a 
small or medium-sized enterprise (SME) \1\ and $3,400 for large firms.
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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 https://www.sba.gov/services/contracting_opportunities/sizestandardstopics/). 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 https://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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    Each additional mission stop will result in an additional 
participation fee of $1,000 for both small or medium sized enterprises 
and large firms alike.
    An additional representative will require an additional fee of $325 
per mission stop for both small or medium sized enterprises and large 
firms alike.
    Expenses for travel, lodging, meals, and incidentals (e.g., local 
transportation) will be the responsibility of each mission participant.

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. Applicant should specify in 
their application and supplemental materials which trade mission stops 
they are interested in participating in. 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 products and 
services it seeks to export through the mission are either produced in 
the U.S., or, if not, marketed under the name of a U.S. firm and have 
at least 51% U.S. content of the value of the finished product 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 % U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's (or, in the case of a trade 
association or trade organization, represented companies') products or 
services to each of the markets the company has expressed an interest 
in visiting as part of this trade mission.
     Company's (or, in the case of a trade association or trade 
organization, represented companies') potential for business in each of 
the markets the company has expressed an interest in visiting as part 
of this trade mission.
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.
    Diversity of company size, sector or subsector, 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.

Timeframe 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, and other Internet Web sites, press 
releases to the general and trade media, direct mail and broadcast fax, 
notices by industry trade associations and other multiplier groups and 
announcements at industry meetings, symposia, conferences, and trade 
shows.
    Recruitment for the mission will begin immediately and conclude no 
later than March 30, 2013. The U.S. Department of Commerce will review 
applications and make selection decisions on a rolling basis beginning 
December 17, 2012, until the minimum of 65 participants is selected. 
After March 30, 2013, companies will be considered only if space and 
scheduling constraints permit.

U.S. Contact Information

Bill Burwell, U.S. Export Assistance Center--Baltimore, 
Bill.Burwell@trade.gov, Tel: 410-962-3097
Leslie Drake, U.S. Export Assistance Center--Charleston, WV, 
Leslie.Drake@trade.gov, Tel: 304-347-5123

Korea Contact Information

James Sullivan, U.S. Commercial Service--Korea, 
James.Sullivan@trade.gov
Mitch Larsen, U.S. Commercial Service--Korea, Mitch.Larsen@trade.gov

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-29293 Filed 12-3-12; 8:45 am]
BILLING CODE 3510-FP-P