Export Opportunities for US Exhibitors at MINExpo INTERNATIONAL

The International Buyer
Program at MINExpo
INTERNATIONAL 2016
®
Agenda
 Overview of the International Buyer Program by Jeffrey Odum
Session 1: Market and Industry Insights
 India Market Insight by Shantanu Sarkar
 Turkey Market Insight by Naz Demirdoven
 Industry Issues and Trends by Andrew Moyseowicz
 Session 1 Q & A
Session 2: Export Finance Services
 SBA Export Finance by Martin Selander
 EXIM Pre- & Post-Export Financing by Michael Jackson
 Session 2 Q & A
Additional Resources
 Kazakhstan Market Insights
 Department of Commerce Advocacy Center Services
Overview of the
International Buyer
Program
By Jeffrey Odum
What is the International Buyer Program?
 U.S. Department of Commerce program to promote U.S.
exports.
 Connect international buyers directly with U.S. companies.
 Commercial Specialists recruit and accompany thousands of
qualified international buyers to attend roughly 24-35 U.S.
trade shows each year.
 One of three Trade Promotion Programs
How does the International Buyer Program
Promote International Sales?
1.
Meet qualified international buyers.
2.
Present products/services to Commercial
Specialists.
3.
Obtain Export Counseling by experts.
4.
Access to Market Research.
International Buyer Program Services at
MINExpo®


B2B Matchmaking
– Connect with qualified international buyers interested in your
products/services.
– List your company in the Export Interest Directory via the MINExpo
exhibitor portal.
– View the full list of delegations being recruited here:
http://www.minexpo.com/minexpo-delegations/
– Contact Matt Baker ([email protected]) with any questions.
Showtime (1-on-1) Appointments
– Meet privately with Commercial Specialists expert in 30 export
markets.
– Present your product/service and obtain market entry/potential
feedback.
– Contact Ryan Russell ([email protected]) with any questions.
International Buyer Program Services at
MINExpo® (cont.)


Attend Expert Briefings
– Attend 30-minute briefings by Commercial and Industry specialists on
market, industry, and export finance issues.
– Contact Jeffrey Odum([email protected]) for more
information.
Visit the International Business Center
– Staffed by U.S. Department of Commerce personnel.
– Obtain export counseling and access to private meeting rooms,
translation support, and internet access.
– Located in room N250 (upper concourse) of the Las Vegas Convention
Center.
– More information: http://www.minexpo.com/international-businesscenter/
Questions about the International Buyer Program
at MINExpo®
CONTACTS
 Jeffrey Odum, Project Officer, Washington, DC
[email protected]; (202)482-6397
 Matt Baker, Matchmaking Lead, Dallas, TX
[email protected]; (817) 684-5349
 Ryan Russell, Showtime Lead, Pittsburgh, PA
[email protected]; (412) 644-2817
Doing Business in
IndiaMining Sector
Shantanu Sarkar
Commercial Assistant
U.S. Commercial Service
Kolkata, India
MINING MAP OF INDIA
MARKET SIZE
• Value of mineral production in 2015: $40 billion.
• Sector contributes about 2.5 % of India’s GDP
• Government-owned mines produce 74% of the
mineral output
• Mining industry growth rate in 2016: 2.1%
• 12 states account for 95% of operational mines
• Market for mining and mineral processing
equipment: $2.3 billion (estimated).
MARKET DRIVERS
• Growth in energy demand => growth in coal
mining
• Increased investment in infrastructure; growth in
demand for metallic & non-metallic minerals
• 100% FDI allowed; Regulatory reforms
• Backward integration of manufacturing
companies into mining for security of supply
• Technology and productivity becoming more
important
MARKET CHARACTERISTICS
• Produces 89 minerals from over 1,878 mines
• Top ten global producer for mica, barites,
coal & lignite, iron ore, chromite, bauxite
and manganese.
• More than 75% of mining is in coal
• Mining sector employs over 1 million people
(opportunity for increased efficiency)
MARKET CHARACTERISTICS
• Close to 200 manufacturers cater to the Indian mining
and construction equipment market
• Leading U.S. companies such as Caterpillar, Joy Mining
have a large and long-standing presence in India
• European and Chinese companies very active in the
market
• Focus on cutting edge technology, safety
• Equipment rental market nascent but growing
• Market open for contract mining
BEST PROSPECTS
• Large state-owned companies: Coal India Limited, SAIL,
NMDC
• Large private companies: Tata Steel, Essel, Vedanta,
Hindalco
• Long wall machinery: Long wall loaders, draglines, jumbo
drills, etc.
• Excavators, shovels and coal/rock cutters
BEST PROSPECTS
• Continuous mining technology
• Mineral screening, washing, crushing and
grinding equipment
• Underground communication and safety systems
• Coal washeries
• Mine safety equipment
Mining Industry in Turkey
Naz Demirdoven
U.S. Commercial Service, Izmir, Turkey
U.S. Department of Commerce | International Trade
Administration
17
Location of Turkey
U.S. Department of Commerce | International Trade
Administration
18
• There are over 4,400 mineral deposits in Turkey.
•
Turkey has:
74% of global boron reserves.
40% of global marble reserves.
2.5% of global industrial raw materials.
Gold
Coal
• 1.4 billion tons of probable hard coal with 519 million
tons of proven reserves in Zonguldak region.
• Over 15 billion tons of proven Lignite reserves.
• Imports coking coal and steam coal.
• 44.1 million tons of coal produced in 2015
• Turkey is the 4th biggest Lignite consumer and 6th
biggest lignite producer. (61.5 million tons)
• Last decade, 7.3 Billion tons of Lignite has
been explored.
Turkish Government Plans for
Developing Coal
• -accelerate the installation of domestic lignite based
power plants using clean coal technologies,
• - increase coal exploration studies;
• maintain the momentum of R&D studies on coal,
particularly on coal gasification and liquid fuel production
technologies;
• improve investment incentives for coal based power
plants; and
• to rehabilitate existing coal-fired power plants.
Other Important Reserves
In Turkey
•
•
•
•
•
•
•
•
Copper
Chromite
Magnesite
Zinc
Pumice
Barite
Bentonite
Silver
•
•
•
•
•
•
•
•
Kaolin
Perlite
Plaster
Sepiolite
Diatomite
Zeolite
Sulphur
Lead
• Antimony
• Alumina
ore
• Gypsium
• Phosphate
• Salt
• Sodium
• Sulphate
• Quartz and
etc…
Mining Equipment Demand
in Turkey
• Mine safety equipment and training
• shovels, excavators, trucks, conveyor systems,
continuous mining equipment, draglines, coal
gasification systems, gold and silver mining and
processing machinery and equipment, mineral
processing equipment, drilling equipment and
mine safety equipment.
Mining Machinery Imports of Turkey (2015)
$78
$28
$23
$8
$4
842920-Graders And
Levelers
Series1
In million $
842951- Mechanical
Front-End Shovel
Loaders
842952-Mechanical
Shovels, Excavators
And Shovel Loaders
With 360 Degree
Revolving
Superstructure
842959-Mechanical
Shovels, Excavators
And Shovel Loaders
843031-Coal Or
Rock Cutters And
Tunneling
Machinery
$6
843041-Boring Or
Sinking Machinery
Key Suppliers in Turkey
Office of Transportation and
Machinery
Machinery Team
(OTM)
• Advocate on behalf of domestic industries
• Analyze key factors affecting global markets for manufactured
products to facilitate the export of U.S. goods and promote inward
investment
• Execute comprehensive competitiveness strategies that focus the
entire range of policy and promotional tools to strengthen global
opportunities for U.S. manufacturers
Office of Transportation and
Machinery
Machinery Team
(OTM)
Examples of OTM activities:
• Provide sector/subject matter expertise at trade events such as
MINExpo
• Conduct sector trade analysis and author top market reports on
critical sectors to include construction and mining machinery
• Participate in trade negotiation activities supporting, inter alia, the
Trans Pacific Partnership and U.S.-EU Transatlantic Trade and
Investment Partnership (T-TIP)
• Construction Machinery and Related Equipment Top market
Report available at
http://trade.gov/topmarkets/pdf/Construction_Equipment_Top_
Markets_Report.pdf
U.S. Exports of Construction Machinery and
Related Equipment
CY 2009-2015
Selected NAICS
Country
2009
2010
2011
2012
2013
2014
2015
9,202,723
6,134,759
1,516,584
1,321,729
974,327
973,457
901,545
810,860
746,059
583,516
578,923
566,300
499,000
457,380
438,966
Percent Change
2014 - 2015
-15.10%
-21.60%
-6.50%
-25.70%
-18.10%
-32.50%
-15.00%
-8.50%
-16.90%
-14.70%
-41.30%
31.80%
-5.50%
-30.60%
20.20%
Subtotal : 18,771,758 25,878,430 33,814,518 37,034,495 30,893,796 31,200,492 25,706,128
All Other: 6,288,649 7,546,897 9,883,693 10,483,562 9,417,782 8,316,044 7,043,110
Total 25,060,406 33,425,327 43,698,211 47,518,058 40,311,577 39,516,536 32,749,238
-17.60%
-15.30%
-17.10%
In 1,000 Dollars
Canada
Mexico
Australia
China
United Kingdom
Brazil
Belgium
Germany
Chile
Singapore
South Africa
United Arab Em
Japan
Peru
Netherlands
6,920,488
2,948,236
1,446,260
1,328,956
676,433
867,721
722,004
579,018
973,257
613,215
542,795
241,643
289,817
407,093
214,823
9,299,127 11,393,298 12,338,744 10,531,768 10,842,911
4,060,128 5,004,139 5,766,254 6,270,341 7,825,879
2,220,718 3,666,261 4,833,222 2,074,256 1,622,055
1,785,005 2,692,260 2,246,695 1,902,973 1,779,869
1,188,196 1,224,946 1,199,642 1,122,228 1,189,877
1,457,387 1,830,989 1,690,934 1,719,527 1,443,157
913,353 1,174,755 1,383,374 1,182,043 1,060,212
841,799
941,525
950,742 1,012,480
886,518
1,169,408 1,657,422 2,039,129 1,277,320
897,864
762,003 1,117,368 1,045,628
776,937
683,869
604,458 1,053,444 1,279,627
935,979
986,612
319,009
349,767
349,415
425,036
429,811
408,828
543,622
552,987
496,621
527,851
582,020
766,559 1,000,045
821,434
658,871
266,991
398,164
358,057
344,853
365,137
U.S. Exports of Construction
Machinery and Related Equipment
2009-2015
U.S. Exports of Mining Machinery
CY 2009-2015
NAICS 333131
Country
2009
2010
2011
2012
2013
2014
2015
609,546
354,191
351,538
285,322
25,784
140,689
172,106
145,022
109,022
78,077
106,330
75,038
40,732
97,321
74,133
590,948
306,410
288,128
197,499
84,930
119,862
111,160
176,259
91,066
92,136
87,441
88,939
43,557
109,548
73,448
414,966
231,099
175,102
170,128
100,603
95,704
94,457
92,724
83,555
82,095
70,905
56,264
51,902
48,765
47,987
Percent Change
2014 - 2015
-29.80%
-24.60%
-39.20%
-13.90%
18.50%
-20.20%
-15.00%
-47.40%
-8.20%
-10.90%
-18.90%
-36.70%
19.20%
-55.50%
-34.70%
Subtotal : 1,710,883 2,167,435 2,793,031 3,148,201 2,664,851 2,461,332 1,816,257
All Other: 739,345 914,805 1,102,425 1,108,835 1,187,246 1,072,036 811,166
Total 2,450,228 3,082,240 3,895,455 4,257,035 3,852,097 3,533,369 2,627,423
-26.20%
-24.30%
-25.60%
In 1,000 Dollars
Canada
Mexico
China
Australia
Argentina
Chile
Russia
South Africa
United Arab Em
Saudi Arabia
Brazil
India
Venezuela
Peru
Singapore
364,273
271,568
215,528
176,901
20,009
109,806
64,881
117,299
33,881
52,358
64,864
68,852
21,724
35,199
93,742
561,008
254,130
335,821
189,513
21,961
95,966
113,589
100,839
42,683
46,742
98,977
94,014
24,056
64,711
123,425
648,100
269,226
385,590
314,179
30,630
140,223
232,427
196,616
57,592
68,934
123,461
57,418
50,509
90,930
127,196
675,667
352,355
397,615
383,083
33,700
186,937
252,657
241,843
57,201
105,032
141,695
67,236
49,856
109,026
94,299
U.S. Exports of Mining Machinery
2009-2015
Global Demand Drivers – U.S. Construction and Mining
Machinery
• Falling Commodity Prices – Significant Headwind for
Machinery Exports
•
•
Continued low oil prices driven by increased US production/supply and lack of supply
disruptions in Middle East
Falling coal, copper, and iron-ore prices are lowering demand from mining sectors
• Global Economic Outlook - Good News/Bad News for Exports
•
•
•
•
•
Consumption is the engine of growth
3.6 percent estimate for 2016 global economic growth predicted to hold steady or
increase slightly in 2017 (IMF World Economic Outlook)
The Good and OK
• NAFTA - Mexico in particular, Canada weighed down by commodity prices
• Europe – Slightly under world economic growth average/Brexit Impact
The Not So Good
• Brazil - Stagnant economic growth, inflation, commodity prices
TBD
• China – Economic growth cooling, uncertainty about the accuracy of official stats
• Commodity dependent economies – low commodity prices
Session 1 Questions?
• International Buyer Program Overview
by Jeffrey Odum ([email protected])
• India Market Insights
by Shantanu Sarkar ([email protected])
• Turkey Market Insights
by Nez Demirdoven ([email protected])
• Industry Issues and Trends
by Andrew Moyseowicz ([email protected])
U.S. Small Business Administration
I nternational Trade Finance Programs
M inEx po Webinar
July 2 0 , 2 0 1 6
36
M artin Selander
I nternational Trade Specialist
U. S. Small Business Administration
U. S. Export Assistance Center
2 3 0 3 M artin Court # 3 1 5
I rvine CA 9 2 6 1 2
( 9 4 9 ) 6 6 0 -8 9 3 5
Additional information available on line
www.sba.gov/international
SBA Export Finance
Assistance Programs:

Export Working Capital Program

SBA Export Express
International
Trade Loan
Export Working Capital Program
 Pre-Shipment Guarantee
Loan proceeds to acquire/produce
goods or services for export
 Post-Shipment Guarantee
Funds advanced to exporter subsequent to shipment,
collateralized by accounts receivable due from foreign
buyers
Export Working Capital Program
$5,000,000 maximum
Short Term + Transaction Based
Loan repayment from assignment of
payment proceeds from foreign buyer:
-Letter of Credit
-Open Account
Unlike more traditional financing, loan
repayment not based upon borrower
cash flow or profitability
Export Working Capital Program
Eligibility & Features
Exporter must demonstrate ability to perform / i.e. in
business 12 months (Note other “non-export” SBA loans
are available from SBA District Office)

Service
& Trading companies are eligible- applicant
does not necessarily have to be a manufacturer
Country
limitation schedule- some countries/buyers are
precluded from support, check with us
Credit
Insurance
Applications
processed at SBA USEAC
SBA Export Express
 Provides financing to small
businesses whose borrowing
needs are too small to be
profitably met by traditional SBA
programs
 “Small” = maximum loan
$500,000 (no minimum)
 Flexible use of proceeds
SBA Export Express
•
Finance Export Development activities supported by U.S.
Department of Commerce Commercial Service
•
Other marketing costs such as participation in a foreign trade
show or translation of product literature for use in foreign markets.
•
Real Estate acquisition or construction to support production of
goods for export.
•
Acquisition of machinery or equipment (i.e. computers, vehicles,
forklifts, etc) to be used in the production of goods for export.
•
Permanent long term working capital infusion
SBA I nternational Trade Loan
M aximum
loan amount $ 5 ,0 0 0 ,0 0 0 .This program
may be suitable option when $ 5 0 0 ,0 0 0 maximum
Export Express loan is insufficient to meet finance
needs
Provides
long term financing for small business
engaged or preparing to engage in exporting
Applicant
must establish that the loan proceeds will
expand an existing export market or develop new
ones
Examples:
purchase fixed assets, such as land and
building, expand or renovate existing facilities, or
purchase machinery and equipment
MINExpo Webinar
July 20, 2016
Michael K. Jackson
Director, Regional Export Promotion &
Small Business Training
Who We Are - What We Do
Ex-Im Bank is an independent agency of the U.S.
Government
• Established in 1934
• Headquartered in Washington, DC
• Twelve Regional offices
Mission: To create and sustain jobs by
increasing U.S. export sales
Our Financing Makes the Difference
• Minimize risk
• Level the playing field
• Supplement commercial financing
Ex-Im Bank Financing Covers the Spectrum
Pre-Export
Financing
Working Capital
Guarantee
PostExport
Financing
Insurance
Guarantees
Direct Loans
How Can Export Import Bank Products
Assist You?
Funds to Fulfill Orders
Working Capital
Guarantee
Risk Protection
Extension of Credit
Receivables Insurance
(export credit insurance)
Buyer Financing
Medium and Long-Term
Insurance & Loan
Guarantee
Public Policy (Charter) Restrictions
Consult with an Ex-Im Bank Regional Director
Customer Contact Center: 1-800-565-3946
(EXIM)
(operating hours: 8 a.m. to 5 p.m. Eastern time, Monday through
Friday, excluding Federal holidays.)
http://www.exim.gov/contact
http://www.exim.gov/contact/regional-exportfinance-centers
Additional Resources
• Additional resources and assistance in applying for ExIm Bank products are available from:
• Insurance Brokers
• Regional Export Promotion Program (REPP)
Members
• Delegated Lenders
www.exim.gov/tools-for-exporters
• US Export Assistance Centers (USDOC and SBA)
www.export.gov
Session 2 Questions?
• SBA Export Finance
by Martin Selander ([email protected])
• EXIM Pre- & Post-Export Financing
by Michael Jackson ([email protected])
• All Other Questions
Further Resources
• Kazakhstan Market Insights
• Department of Commerce
Advocacy Center Services
Mining Industry
Opportunities in Kazakhstan
Presented by the U.S. Department of Commerce
U.S. Commercial Service Almaty, Kazakhstan
July 20, 2016
[email protected]
Kazakhstan; COUNTRY OVERVIEW
Geography

Large Country by Area
– 2.7 million sq km
– 9th largest in world by land
– Strategic Eurasian location

Natural Resources and Land Use
– One of the world's mineral-rich
countries, possessing world-class
deposits of minerals and raw materials,
including coal and ferrous and nonferrous metals
– Rated as 4th in the world in copper, 6th
in zinc, 7th in cobalt and cadmium, 8th
in gold
– 2,078,000 km2 of agricultural land
COUNTRY OVERVIEW
Economy

Real GDP (2015): $173.2 billion(Source: EBRD.com)

Projected GDP Growth (Source: IMF)
– 1.5% - 2015
– 1.1% - 2016
– 2.4% - 2017

GDP Per Capita PPP (Source: CIA FactBook)
– $24,300 (2015)
Strengthening institutions (via the “100 Steps” Program)- improving
physical infrastructure and raising the quality of human capital-long-term
development strategy “Kazakhstan 2050”-based diversified economy
driven by the private sector.

COUNTRY OVERVIEW
Economy



Heavy dependence on oil
– 2% of world’s oil
– Proven reserves – 16 billion bbl
(estimated 40 billion bbl )
– Greatest potential in Caspian
basin – 80% of proven oil
reserves
Belarus-Kazakhstan-RussiaKyrgyzstan-Armenia Eurasian
Economic Union
World Trade Organization member
since November 2015
COUNTRY OVERVIEW
Concerns/Challenges









In the list of the Transparency International 2016 Corruption Perceptions
Index Kazakhstan takes 123th place
August, 2015 -Government of Kazakhstan introduced local currency float
regime. The Kazakhstani Tenge immediately
moved from 187to the Dollar to 350 to the Dollar
Intellectual Property Protections
– Trade Mark and Domain Name Squatters
Challenge to find qualified business partners
Product Registration –Time-consuming, $$
Large state role in the economy
Complicated and non-transparent regulatory regime
Nothing Happens Fast in Kazakhstan
Resource
– Department of Commerce Country Commercial Guide
– www.export.gov/kazakhstan
INDUSTRY OVERVIEW

A wide range of mineral resourcescoal, and ferrous and non-ferrous
metals

230 enterprises producing or
processing of minerals

30% of export earnings, over 16% of
GDP and 19% of industrial
employment.

2009- 93 million tons of coal- world’s
9th largest producer

the 8th largest in iron ore reserves with
12.5 billion tons.

Significant producer of beryllium,
tantalum, barite, and cadmium
among the Commonwealth of
Independent States (CIS)

Developing its gold mining (ranked
10th globally) and uranium mining
(25% of world reserves)

Mining industry- annual growth
9,9%
US$24.7bn
2011
2012
US$64.2bn
2015
Kazakhstan Mining Industry

Expanding demand from China and India
and foreign investment

Tax code- reduction of some corporate
taxes, including corporate income tax
and VAT

Mining Law of 2005- mining fees charged
by the government


Investment:
$55billion over the past decade,15% was
in prospecting

$52billion in 2010-2015
KAZAKHSTAN MINING EQUIPMENT MARKET


2015-6.1%
2008-1.7%

Out of 2,000 mines: prospecting at 132 mines (7%) extraction at 1,213
(61%) and both activities at 641 (32%)


Properties:
Kazakhstan attractive market for U.S. mining equipment/machinery
exporter

Best sales prospects -diamond drilling contractors and experts

U.S. mining equipment and services suppliers



Examples:
on Aktogay and Bozshagol deposits
on “SGPK” CA, Stepnogorsk city
KEY SUPPLIERS
COUNTRIES OF KEY SUPPLIERS ARE:
U.S, Japan, Korea, Russia, Sweden, Germany, the United Kingdom and recently China
PROSPECTIVE BUYERS








KAZAKHMYS- Corporation was a UK-registered copper mining company
KAZ MINERALS- copper company focused on large scale, low cost open
pit mining in Kazakhstan
EURASIAN RESOURCES GROUP (ERG)- private multinational leading
diversified natural resources company headquartered in London, United
Kingdom
Bogatyr Access Komir- largest coal mining company in Kazakhstan
KazAtomProm Corporation- national operator for the import and export
of uranium and other double-use materials. Owner- government
KAZATOMPROM- state-owned nuclear holding company in Kazakhstan
APPAK LLP- the first Kazakhstan-Japanese Joint Venture which has
reached a commercial production of uranium
ARCELORMITTAL TEMIRTAU- multinational steel manufacturing
corporation headquartered in Avenue de la Liberté, Luxembourg
TRADE EVENTS
 MiningWorld Central Asia 2016
Is the largest and most respected in
Kazakhstan and Central Asia international
exhibition of mining and metallurgic
complex combining leading manufacturers

Kazcomak 2016
13th Kazakhstan International Road and
Heavy Construction, Communal Machinery
Exhibition
 Metaltech Central Asia 2016
2nd Kazakhstan International Metalwork
Technology and Equipment Exhibition
The U.S. Commercial Service
U.S. Consulate General in Almaty
41 Kazybek bi Street
Almaty 050010, Kazakhstan
Azhar Kadrzhanova, Commercial Specialist
Tel.: +7 (727) 250 7612, ext.: 6493
[email protected]
Pat Cassidy, Senior Commercial Officer
U.S. Commercial Service
Tel.: +7 (727) 250 7612, ext.: 6488
[email protected]
www.export.gov.gov/kazakhstan
The Advocacy Center coordinates U.S. Government resources and
authority on behalf of U.S. business interests as they compete against
foreign firms for specific international public contracts, both civilian
and defense sales in order to level the playing field.
The Advocacy Center also has Commercial Service liaisons to five
Multilateral Development Banks to assist U.S. firms and advocate
on their behalf when they compete for Bank tenders.
African Development Bank
Asian Development Bank
European Bank for Reconstruction & Development
Inter-American Development Bank
World Bank
70
USG Advocacy is:
• Government-to-Government (G2G)
• A counter weight to foreign government political pressure
• Intended to promote fairness in the tender process
The Advocacy Center and Guidelines were developed for
project- focused, company specific issues.
.
Sources of Assistance: Roles
The Commercial and Economic Sections
at the Embassy
•
• The Office of Defense Cooperation
.
• Export Assistance Centers
Requesting Advocacy
Advocacy helps once a company has identified a foreign
government procurement opportunity, either for defense
or commercial items, for which it plans to compete.
Principal steps in the process:
1. Company contacts Advocacy Center Regional
Manager
2. Company Submits Advocacy Questionnaire
3. Due Diligence
4. National Interest Determination
5. Creation of Appropriate Advocacy Strategy
6. Coordination of the Message and Medium of
Advocacy
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Advocacy Questionnaire
• Project Description
• Type of Project / Transaction
• Estimated Total Value
• Estimated U.S. Content
• Project Partners and/or Bidder of Record
• Overall Effect on U.S. Economy
• Type of Assistance Requested
• Foreign Government Decision Maker
• Timeline
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National Interest Determination
• Based on Material Benefit to the U.S. Economy. For defense items, the
impact on U.S. National Security and Foreign Policy Objectives is also
considered.
•When the U.S. content is less than 50% of total value, other
considerations include:
• U.S. Materials and Equipment Content;
• U.S. Labor Content;
• Contribution to the U.S. Technology Base (including R&D); and,
• Potential for Follow-On Business Benefiting U.S. Economy.
•All companies that apply for advocacy and whose bids are deemed to be in
the U.S. National Interest shall be advocated for equally.
•National interest no longer includes “Repatriation of
Profits.”
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How Do We Advocate?
Engagement by Senior USG Officials with
overseas governments that may take the
form of:
• Official correspondence
• Focused meeting / in-person
advocacy
• Talking point in bi-lateral meeting /
dialogue
Advocacy Strategies
The Advocacy Center is the gateway to U.S. Government Advocacy at
various levels. Advocacy is always government-to-government and
typically addressed to the advocating official’s direct counterpart
Senior Commercial Officer or Economics Officer
• Staff-level decision-makers
• Sub-cabinet officials
Ambassador
• Ministers, Cabinet-level officials
• Chief executives at the sub-national-level
Cabinet Secretary
• Ministers, Cabinet-level officials
President
• Heads of State
Understanding the Market - What
Questions Should You Ask?
• Do you need a partner? Does the government require localization
in your proposal?
• What technology standards is the government using?
• What is the structure of the government’s tender process? How
transparent is it? How do they announce tenders?
• How active are your competitors, foreign and domestic, in the
market?
• What USG export licenses will be required to export to that
country?
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Best Practices for Advocacy
• Visit the Embassy Early to Brief on In-Country Efforts and
for a Reality Check. Don’t Wait!
• Leverage Commercial Service in Country for Introductions
to commercial points of contact.
• Understand the Country’s tender process and budget situation
and identify key decision makers for your procurement.
• Understand partnering requirements for the doing business
with the government
•Contact the Advocacy Center Early to See if Advocacy Might
Help.
• Identify Trade Events and Business Organizations Relevant
to Your Country.
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Best Practices for Defense
Advocacy
• Understand the USG Export Controls and Security
Assistance Goals for the Country.
• Apply Early, Defense Cases Require a Lengthy
Clearance Process.
•Be aware of Industrial Cooperation and Partnership
Requirements.
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For More Detailed
Information
Advocacy Center Website
•Staff Listing
•Advocacy Guidelines
•Advocacy Questionnaire and Anti-Bribery Agreement
http://www.export.gov/advocacy
Main Line: 202-482-3896