Architecture Services Trade Mission to Rio de Janeiro and Recife, Brazil, October 7-10, 2013, 38687-38690 [2013-15341]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Notices]
[Pages 38687-38690]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15341]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration


Architecture Services Trade Mission to Rio de Janeiro and Recife, 
Brazil, October 7-10, 2013

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

Mission Description

    The United States Department of Commerce, International Trade 
Administration (ITA), U.S. and Foreign Commercial Service (CS), with 
support from the American Institute of Architects (https://www.aia.org), 
is organizing an executive-led Architecture Services Trade Mission to 
Brazil from October 7 to 10, 2013. The purpose of the mission is to 
introduce U.S. firms to Brazil's rapidly expanding infrastructure 
projects, and to assist U.S. companies to pursue export opportunities 
in this sector. The mission to Brazil is designed for U.S. 
architectural, project management, and design services companies, that 
provide state-of-the-art and world class designs. Target sectors 
holding high potential for U.S exporters include: master planning 
(regional design--city planning or regional planning, port re-
development--design of the walkways, buildings, etc. along the port); 
hospitals and health care architecture; airports/other transportation 
infrastructure facility architecture; mixed-use projects architectural 
services; and educational facilities.
    The mission will include stops in Rio de Janeiro and Recife, where 
participants will receive market briefings and participate in 
customized meetings with key officials and prospective partners.
    The mission supports President Obama's National Export Initiative 
(NEI) and his goal of doubling U.S. exports by 2015 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 Brazil 
to increase their footprint and deepen their business interests.
    The mission will help participating firms and associations/
organizations gain market insights, make industry contacts, solidify 
business strategies, and advance specific projects, with the goal of 
increasing U.S. exports of services to Brazil. 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 Brazil on their own, will enhance the companies' 
ability to secure meetings in Brazil.
    The mission will be supported by the American Institute of 
Architects (AIA) (https://www.aia.org). All U.S. architecture/
construction/engineering (ACE) trade associations or organizations are 
encouraged to apply. The mission is open broadly to all U.S. firms, 
service providers, and organizations in the ACE sector, whether or not 
they are members of AIA or any other ACE trade association/
organization. Selection criteria for participation, as set out below, 
are the same for all applicants.

Commercial Setting

    Brazil is experiencing major growth in the ACE industry. The 
country will capture global attention as its major cities are 
undergoing a construction boom in preparation for the World Cup in 2014 
and, specifically for Rio de Janeiro, the Olympic Games in 2016.
    Architectural design and Engineering projects around the country, 
from roads and stadiums to airports and retail space, are abundant. 
Although there is strong competition from local firms, American ACE 
firms with a niche expertise are welcome to do business in Brazil by 
working with local partners, provided they understand the legal and 
regulatory requirements and procedures for being able to work in 
Brazil. U.S. and international ACE companies are finding business in 
Brazil because of the high level of private sector and government 
investments in infrastructure.
    The Brazilian Equipment and Maintenance Technology Association 
(Sobratema) states that the infrastructure sector is estimated to 
receive US$600 billion in investments from 2013 through 2017. The sum 
will be divided between the energy and infrastructure sectors, with a 
larger amount allocated for infrastructure development such as road, 
rail, ports and stadiums.
    US$66.5 billion will be invested over 25 years in building 7,500 km 
of highways and 10,000 km of railways in Brazil. US$1.10 billion will 
be invested in Ports and another US$3.15 billion will be invested in 
Port terminals.
    In the airport sector, three of the major airports have been 
recently privatized and two more are scheduled to be privatized by the 
end of 2013, in the major cities of Rio de Janeiro and Belo Horizonte. 
The Brazilian Federal Government will invest US$3.65 billion in 270 
airports around the country, with the goal that 96% of Brazilians will 
be no more than 100 km from an airport. Please see Country Commercial 
Guide Airport Industry best prospect at https://export.gov/brazil/doingbusinessinbrazil/index.asp.
    The outlook for the coming years seems positive, especially due to 
the model outlined in the Public-Private Partnerships (PPPs) of 
Brazil's Growth Acceleration Program (PAC) (https://homologacao.brasilglobalnet.gov.br/CDInvestimento/dados/I/7.3.ParceriasPublicoPrivadasPPPs.aspx). It is expected that concessions 
and privatizations in many infrastructure

[[Page 38688]]

projects will provide the opportunity for further investments in the 
future. These major investments will bring many opportunities for ACE 
firms that are capable and ready to partner with local construction and 
engineering firms that are active in PPP projects.
    Best Prospects in the architectural sector can be found in areas 
such as airports, ports, hospitals, and include:

--Ports (Port of Rio and Santos re-development--design of the walkways, 
buildings, along the port)
--Airport design (such as airport terminals, existing and expansion of 
terminals, security)
--Industrial design for plants, manufacturing, new or planned 
extensions
--Health sectors (new hospitals and upgrades to existing)
--Lighting design, including commercial, industrial, urban (LED is 
increasingly gaining popularity in Brazil)
--Urban planning (non-residential design, technology, and equipment for 
``smart cities'')
--Sport venues design and equipment
--Building Information Modeling (BIM) Process

    Many ACE projects are now being required to contain sustainable or 
``green'' content, according to Leadership in Energy and Environmental 
Design (LEED) and other certification programs.

Rio de Janeiro

    The 2014 FIFA World Cup is scheduled to take place from June 12 to 
July 13, 2014 throughout 12 cities in Brazil. Rio de Janeiro will also 
host the 2016 Summer Olympics Games. This will be the first Summer 
Olympics held during the host city's wintertime, as well as the first 
time a South American city will host the event. The pressure is now on 
Brazil to convince the world they can handle events of this magnitude.
    Although more than half of Rio's Olympics venues are already built, 
a legacy from the Rio 2007 Pan American Games, investments from 2010 
through 2016 will reach approximately US$50 billion, including airport 
renovation, stadium construction and renovations and infrastructure 
projects--all in preparation for the thousands of tourists who will 
attend these major events. Unlike in London, the percentage of 
investments dedicated to transportation such as buses, beltways and 
metro lines will be higher than investments dedicated to Olympic sports 
projects such as arenas and stadiums. Many projects are funded through 
the Public-Private Partnerships (PPPs). The Port area and the 
international airport (GIG) will be undergoing major expansions. The 
international airport in Rio is scheduled to be announced for 
privatization around the fall of 2013, creating opportunities for 
architectural firms to partner with concession winners. For an 
understanding of the regulatory environment that architectural design 
firms face in Brazil, please read our report on licensing at: https://export.gov/brazil/games/eg_br_024085.asp.

Recife

    Recife is the capital of the state of Pernambuco and the largest 
city in Brazil's Northeast with a population of more than 8 million 
people in the metropolitan area. It will also serve as a host city for 
the 2014 World Cup. The Northeast is Brazil's fastest-growing region, 
and Pernambuco is Brazil's fastest-growing population center. 
Pernambuco and Recife have generated the highest economic growth rates 
in recent years, and infrastructure projects to support the growth 
abound. In the last two years, Brazil's gross domestic product grew 7.5 
and 2.7 percent. Meanwhile, Pernambuco's economy grew by 9.3 and 4.5 
percent respectively, according to the Brazilian statistics agency. 
Many Brazilians now migrate to the Northeast to find work, a complete 
turn-around from the historical migration pattern.
    Pernambuco is home to the industrial complex and port of Suape, 
which has more than 100 companies present and a further 25 in various 
phases of starting up. According to the Global Director at the port, 
private investment now equals around $27 billion. Suape also hosts the 
largest shipyard in the Southern Hemisphere and Petrobras' Abreu e Lima 
refinery, the largest and most modern oil refinery in Brazil. Two new 
shipyards are under construction. The state government is also building 
the Suape Business Center that will have a 192-room hotel and four 
business towers to support the business community around Suape.
    Logistics in the region are also an area of investment, with 
Pernambuco planning to invest $31 billion. This includes over $5 
billion for the railway connecting two ports, Suape and Pecem (in the 
state of Ceara), with the interior of the region. According to local 
business leaders, the government of Pernambuco plans to invest $20 
billion over the next 10 years to build 14 planned cities. One such 
city, Cidade da Copa, is being built in conjunction with the Pernambuco 
Arena, Recife's newly built stadium seating 47,000 spectators that will 
host World Cup games. It will be one of the first ``smart'' cities 
constructed in Latin America. Cidade da Copa is planned to have 
residential and business units, a university campus, an indoor arena, a 
hotel, and a convention center.

Mission Goals

    The goals of the Architecture Services Trade Mission to Brazil are 
to provide U.S. participants with first-hand market information, and 
one-on-one meetings with business contacts, including potential 
partners, so that they can position themselves to enter or expand their 
presence in the Brazilian market. As such, the mission will focus on 
helping U.S. companies obtain market information and establish business 
and government contacts.
    The mission will also facilitate first-hand market exposure and 
access to government decision makers and key private-sector industry 
contacts, especially potential partners. It will provide opportunities 
for participants to have policy and regulatory framework discussions 
with Brazilian government officials and private sector representatives, 
in order to advance U.S. architectural sector interests in Brazil. It 
will provide participants with an opportunity to meet with Brazilian 
architecture trade associations, such as ASBEA and CAU, to foster long-
term partnerships and for sharing best practices and continuing 
education, especially with trade association/organization participants.

Mission Scenario

    The mission will start in Rio de Janeiro with a welcome dinner on 
Sunday, March 6. The next day the participants will attend a briefing 
organized by CS Rio before introducing guest speakers to provide an 
overview of the city and state projects. Additional planned events 
include site tours and matchmaking events with ACE potential partners, 
including briefings on the upcoming airport concessions and/or port 
areas, city planners etc.
    In Recife, the delegates will start with briefings by local 
industry and government officials on the opportunities available in 
Recife, the state of Pernambuco, and the Northeast region. The 
afternoon's agenda will comprise one-on-one matchmaking meetings.
    The following day, mission participants will have the opportunity 
to tour the port of Suape. In addition to being the largest port in the 
region, it hosts an expanding industrial cluster. Because of the large 
number of people employed and the distance from the

[[Page 38689]]

port to the city of Recife, various planned cities are being 
constructed in the area, which we will tour.
    The participants will attend policy, market and commercial 
briefings by the U.S. Commercial Service and industry experts as well 
as networking events offering further opportunities to speak with 
government officials as well as potential distributors, agents, 
partners and end users. U.S. participants will be counseled before and 
after the mission by CS Brazil staff. Participation in the mission will 
include the following:
     Pre-travel briefings on subjects from business practices 
in Brazil to security;
     Pre-scheduled meetings with government officials, 
potential partners, developers, and local industry contacts in Recife 
and Rio de Janeiro
     Airport transfers during the mission between the stops in 
Rio and Recife;
     Participation in networking receptions in Rio and Recife; 
and participation in matchmaking meetings with potential partners and 
developers in both cities.

Proposed Timetable

Rio de Janeiro

Sunday--October 6
     Arrive in Rio
     Evening Welcome Dinner
     Overnight stay in Rio
Monday--October 7
     Breakfast briefing FCS
     Briefing by industry experts and gov't officials
     Networking lunch w Chamber/Association
     Matchmaking meetings
     Evening Reception
     Overnight stay in Rio

Rio/Recife

Tuesday--October 8
     Site Visits in Rio
     Networking Lunch in Rio
     Afternoon travel to Recife
     Overnight stay in Recife

Recife

Wednesday--October 9
     Meetings with local industry and government officials
     Networking lunch with local industry representatives
     Matchmaking meetings
     Overnight stay in Recife

Recife

Thursday--October 10
     Site visits
     Mission Officially Ends

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
U.S. 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 15 and maximum of 20 firms 
and/or trade associations or organizations will be selected from the 
applicant pool to participate in the mission.

Fees and Expenses

    After a company or trade association/organization has been selected 
to participate on the mission, a payment to the U.S. Department of 
Commerce in the form of a participation fee is required. The 
participation fee is $3,250 for small or medium-sized enterprises (SME) 
\1\ and trade associations/organizations. The participation fee for 
large firms is $4,000.00. The fee for each additional representative 
(large firm or SME or trade association/organization) is $750.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

Exclusions

    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation (except for 
transportation to and from meetings, and airport transfers between Rio 
and Recife during the mission), and air transportation. Delegate 
members will however, be able to take advantage of U.S. Government 
rates for hotel rooms. Visas will 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

    Applicants must submit a completed and signed mission application 
and supplemental application materials, including adequate information 
on the company's or association/organization's products and/or 
services, primary market objectives, and goals for participation by 
August 9, 2013. If the Department of Commerce receives an incomplete 
application, the Department may either: Reject the application, request 
additional information/clarification, 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 United 
States, or, if not, are marketed under the name of a U.S. firm and have 
at least fifty-one percent U.S. content. In the case of a trade 
association or organization, the applicant must certify that for each 
company to be represented by the association/organization, the products 
and/or 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.
    In addition, each applicant must:
     Certify that the products and services that it wishes to 
market through the mission would be in compliance with U.S. export 
controls and regulations;
     Certify that it has identified to the Department of 
Commerce for its evaluation any business pending before the Department 
that may present the appearance of a conflict of interest;
     Certify that it has identified any pending litigation 
(including any administrative proceedings) to which it is a party that 
involves the Department of Commerce; and
     Sign and submit an agreement that it and its affiliates 
(1) have not and will not engage in the bribery of foreign officials in 
connection with a company's/participant's involvement in this mission, 
and (2) maintain and enforce a policy that prohibits the bribery of 
foreign officials.

Selection Criteria for Participation

    Targeted mission participants are U.S. companies and trade 
associations/organizations providing or promoting ACE services that 
have an interest in entering or expanding their business in the 
Brazilian market. The following criteria will be evaluated in selecting 
participants:
     Suitability of a company's (or in the case of a trade 
association/organization, represented companies') products or services 
to the Brazilian market.
     Company's (or in the case of a trade association/
organization, represented companies') potential for business in Brazil, 
including likelihood of exports resulting from the mission.
     Consistency of the applicant company's (or in the case of 
a trade association/organization, represented companies') goals and 
objectives with the stated scope of the mission.
    Additional factors, such as diversity of company size, type, 
location, and

[[Page 38690]]

demographics, may also be considered during the review process.
    Referrals from political organizations and any documents, including 
the application, 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 Application

    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 (https://www.export.gov/trademissions/
) and other Internet Web sites, press releases to general and trade 
media, direct mail, broadcast fax, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows.
    Recruitment for this mission will begin immediately and conclude no 
later than August 9, 2013. The U.S. Department of Commerce will review 
applications and make selection decisions on a rolling basis beginning 
June 24, 2013 until the maximum of 20 participants is selected. 
Applications received after August 9, 2013 will be considered only if 
space and scheduling constraints permit.

Contacts

U.S. Commercial Service Washington, DC

    Arica Young, U.S. Commercial Service, Washington, DC, Tel: 202-482-
6219, Email: Arica.Young@trade.gov.

U.S. Commercial Service Brazil

    Patrick Levy, U.S. Commercial Service, Rio de Janeiro, Brazil, Tel: 
+55+21-3823-2413, Email: Patrick.Levy@trade.gov.

Elnora Moye,
Program Assistant.
[FR Doc. 2013-15341 Filed 6-26-13; 8:45 am]
BILLING CODE 3510-FP-P