Automotive Trade Mission to Bogota, Colombia and Lima, Peru, April 26-30, 2015

Automotive Trade Mission to Bogota, Colombia and Lima, Peru, April 26-30, 2015

Automotive Trade Mission to Bogota, Colombia and Lima, Peru, April 26-30, 2015

Frank Spector
Department of Commerce
November 19, 2014

[Federal Register Volume 79, Number 223 (Wednesday, November 19, 2014)]
[Notices]
[Pages 68863-68865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27399]

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DEPARTMENT OF COMMERCE

International Trade Administration

Automotive Trade Mission to Bogota, Colombia and Lima, Peru,
April 26-30, 2015

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

The Commerce Department's International Trade Administration (ITA)
and the U.S. Commercial Service (USCS) posts in Bogota, Colombia and
Lima, Peru will organize a Business Development Mission April 26-30,
2015.
The Business Development Mission supports the federal government's
Look South Initiative, which encourages U.S. companies to explore
opportunities in the United States' eleven Free Trade Agreement Partner
(FTA) countries in Latin America. Automotive parts and services are in
high demand in these high-growth and market-liberalizing countries.
Export.gov/LookSouth includes ``Best Prospect'' market snapshots on
automotive parts and services across eight FTA countries.
The Business Development Mission will include representatives from
a variety of U.S. automotive manufacturing companies, service providers
and associations/organizations. These mission participants will be
introduced to international agents, distributors and end-users whose
capabilities are targeted to each U.S. participants' needs in that
particular market. Mission participants will also meet with key local
industry contacts that can advise on local market conditions and
opportunities. In addition to the above-mentioned services, the U.S.
Commercial Service industry specialists will be on hand to discuss
market trends and opportunities in Colombia and Peru.

Commercial Setting

The Republic of Colombia is the third largest economy in Latin
America and has the third largest population with approximately 46
million inhabitants. Aided by major security improvements, steady
economic growth, and moderate inflation, Colombia has become a free
market economy with major commercial and investment ties to the United
States, Europe, Asia and the rest of Latin America. Since the
implementation of the U.S.-Colombia Free Trade Agreement (FTA) on May
15, 2012, U.S. exports to Colombia have increased over twenty percent.
The past ten years have brought extraordinary change to the country in
terms of economic development due to improvements in the national
safety and security situation. Strong political stability, a growing
middle class (35.3 percent of the population), and improved security
have created an economic boom in Colombia that, coupled with the
government's conservative fiscal policies, lessened the impact of the
global economic crisis. Key economic indicators demonstrating the
positive long-term effect of Colombia's political and economic policies
include: GDP growth of 4.3 percent in 2013; and foreign direct
investment of US$ 16.8 billion in 2013, a record for Colombia, which is
an increase over the previous record of US$ 15.3 billion in 2012. These
are all signs of a strong and growing economy.
Due to Colombia's close ties to the United States and Colombians'
appreciation for the quality and reliability of U.S products, consumers
in Colombia often favor U.S. products and services over those of our
foreign competitors. Colombia is a major player in the regional
automotive market. At the beginning of 2013 there were 9.3 million
vehicle units in the country, according to data from the Ministry of
Transportation. According to research conducted by the multinational
banking group BBVA in 2013, Colombia's vehicle stock will increase by
3.5 million between 2010 and 2020. The same study establishes that the
automotive sector contributes to 4 percent of the country's GDP and
employs about 3.2 percent of the country's population. Colombia
currently ranks as the third largest automobile manufacturer in Latin
America. In addition, after Brazil, Colombia is the second largest
motorcycle producer in the region, with an annual output of 515,000
motorcycles. A number of international auto manufacturers currently
produce vehicles in Colombia. 68 brands and 267 models are found in the
market. The high import percentage represents good opportunities for
all imported parts and accessories, especially those from the United
States, which are very well known and regarded nationwide. The average
lifespan of a vehicle in Colombia is fifteen years. Due to this, there
are significant opportunities for replacement parts. In addition, with
the implementation of the FTA, tariffs for most auto parts made in the
United States have been reduced from thirteen to zero percent.
Peru continues to be one of the fastest growing Latin American
economies in the past eleven years, while keeping low inflation, as the
International Monetary Fund noted in January 2014. The steady economic
growth began with the pro-market policies enacted by President Fujimori
in the 1990s. All subsequent governments have continued these policies,
including the current administration inaugurated in July 2011 for a
five-year term.
Although growth slowed down in the last three years, the Peruvian
economy has grown at an average of 6.3% per year since 2002, reaching a
$207 billion GDP in 2013. The trend is expected to continue with a
projected GDP growth of 5.2% in 2014 and 5.7% to 6.0% in 2015. Private
investment and consumption are anticipated to be the main driving
forces of this growth. Projections for 2014 are that gross fixed
investment growth will exceed 7% in real terms to reach US$55.3
billion. Public investment is increasingly important as in 2013 it was
$11.6 billion (5.3% of GDP), while in 2001 it was $1.7 billion (3.1% of
GDP). The Ministry of Economy and Finance (MEF) foresees that public
investment will increase 17% in dollar terms to US$13.4 billion. As the
economy has grown, poverty in Peru has steadily decreased, to 23.9% in
2013. In its November 2012 Peru Handbook, HSBC states that Peru is
``the third-fastest growing consumer market globally, and set to be a
bigger economy than Chile, Colombia, or even South Africa in the long
term''.
The Peruvian Government has encouraged integration with the global
economy by signing a number of free trade agreements, including the
United States-Peru Trade Promotion Agreement (PTPA), which entered into
force in

[[Page 68864]]

2009. The strong economic growth in Peru has increased consumer buying
power in the country and, as a result, the demand for automobiles. The
establishment of free trade agreements and reduction on tariffs
increased the automobile industry demand, which also boosted the demand
for more auto parts.
The auto parts industry grew 4.5 percent from 2012 to 2013--a total
of over US$1.5 billion--with tires being the main import item for both
light and heavy vehicles, followed by the segments for lubricants,
engine parts, filters, transmission systems and body parts. The United
States is a major exporter of auto parts to Peru, though increasing
exports from Asian countries, particularly China, provide for a high
level of competition. U.S. products are widely accepted and understood
to be of high quality. Marketing strategies should emphasize product's
quality and valuable post-sale service provisions. Furthermore, formal
and personal connections should be formed with potential partners in
Peru to foster trust in the agreement. Peru's automobile market has
ample space to grow, as the number of cars is small compared with other
countries in the region with similar income levels. Furthermore, the
higher average age of vehicles creates a context which is envisioned to
encourage vehicle renewal.
Companies that intend to export Aftermarket Parts & Accessories;
Chemicals and Lubricants; Parts and Components; Mobile Electronics and
Components; Tools and Testing Equipment; and Services Consulting
possess great potential for success. Other companies will be considered
as well based on their market potential in both countries.

Mission Goals

The goal of the Automotive Trade Mission is to facilitate an
effective presence for small and medium sized companies to export to
companies in Colombia and Peru. The mission will enable U.S. companies
and associations/organizations to familiarize themselves with these
important markets, to conduct market research, and to explore export
opportunities through pre-arranged meetings with potential partners.
The companies and associations/organizations will be able to network
with government and industry professionals, providing them with an
enhanced image and level of engagement. Knowledgeable Commercial
Service Specialists who are familiar with the firms' objectives will
support the mission participants.

Proposed Timetable

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Day of week Date Activity
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Sunday.......................... April 26, Bogota, Arrive in Bogota, Colombia.
Colombia.
Monday.......................... April 27, Bogota, Business Breakfast Briefing.
Colombia. One-on-One Business Meetings.
Luncheon.
Evening Welcome Reception.
Tuesday......................... April 28, Bogota, One-on-One Business Meetings.
Colombia. or Follow-up meetings or site visits.
Travel to and arrival in Lima, Peru.
Wednesday....................... April 29, Lima, Peru... Business Breakfast Briefing.
One-on-One Business Meetings.
Luncheon.
Evening Welcome Reception.
Thursday........................ April 30, Lima, Peru... One-on-One Business Meetings.
Follow-up meetings or site visits.
Thursday/Friday................. April 30/May 1, Lima, Check out hotel.
Peru. Return to the United States.
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Participation Requirements

All persons and associations/organizations interested in
participating in the Automotive Trade Mission to Colombia and Peru 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. Target recruitment for the Trade Mission is
minimum 12 and maximum 20 companies. After an applicant has been
selected to participate in the mission, a payment to the Department of
Commerce in the form of a participation fee is required. Upon
notification of acceptance to participate, those selected have 5
business days to submit payment or the acceptance may be revoked.

Fees and Expenses

SME Participation Fee $3,124
Large Company Participation Fee $4,477
Participation fee for third company representative $500

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. If the U.S. 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.
A company's products or services must be either produced in the
United States 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/
service.
Criteria for Participant Selection: Each applicant to the program
will be screened for the following:
Relevance of the company's or association's/organization's
business line to the mission's goals.
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\*\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (for additional
information see http://www.export.gov/newsletter/march2008/initiatives.html).
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Timeliness of company's or association's/organization's
signed application.
Timely and adequate provision of company and product/
service information and literature, in order to enable communication of
company's objectives and scheduling of business appointments.

[[Page 68865]]

Provision of adequate information on company's or
association's/organization's products and/or services, and primary
market objectives, in order to facilitate appropriate matching with
potential business partners.
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.
Expenses for lodging, some meals, incidentals, and travel (except
for transportation to and from airport) will be the responsibility of
each mission participant.

Timeframe for Recruitment and Applications

Recruitment for the mission is to begin immediately and conclude no
later than March 1, 2015. The U.S. Department of Commerce will review
all applications immediately after the deadline. We will inform
applicants of selection decisions as soon as possible after March 1,
2015. Applications received after that date will be considered only if
space and scheduling constraints permit.
ITA Trade Specialists will promote the Trade Mission. This
promotion will take place nation-wide and will largely be handled by
the Global Automotive Team. Those interested in the mission will apply
to the program, and once accepted will work with the mission leader(s)
to develop their business goals in Colombia and Peru. If the
participation fee is not paid within the designated timeframe, the
offer to participate on the mission may be withdrawn.
U.S. Export Assistance Center trade specialists and particularly
members of the Global Automotive Team will recruit and counsel
prospective participants for the trade mission. Company information and
literature will be forwarded by the companies to CS Bogota and CS Lima.
The two offices will then begin the partner search, and will provide
management and logistical coordination of the program.
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade missions calendar--http://www.ita.doc.gov/doctm/tmcal.html--and other Internet Web sites, publication in domestic trade
publications and association newsletters, mailings from internal
mailing lists, emails to internal database of clients, email to sector
distribution lists, through posting in the Federal Register, and at
industry meetings, symposia, conferences, trade shows, etc. The Trade
Mission will also be promoted by USCS and by team members of the Global
Automotive Team.

Contacts

Lesa Forbes
Miami U.S. Export Assistance Center, 5835 Blue Lagoon Drive, Suite 203,
Miami, FL 33126, Tel: (305) 526-7425 ext 28, Fax: (305) 526-7434,
Email: Lesa.Forbes@mail.doc.gov.
U.S. Commercial Service in Peru:
Rachel Kreissl, Commercial Officer, Gustavo Romero, Commercial
Specialist, Avenida La Encalada Cuadro 17 s/n, Monterrico, Surco, Lima
33, Peru, Tel: 011 511-434-3040, Fax: 011 511-434-3041, Email:
Rachel.Kreissl@Trade.Gov, Gustavo.Romero@Trade.Gov.
U.S. Commercial Service in Columbia:
Jeff Hamilton, Commercial Officer, Norcia Ward-Marin, Commercial
Specialist, American Embassy, Carrera 45, No 24B-27, Bogota, D.C.
Colombia, Tel. 011 571-275-2519, Fax 011 571-275-4575, Email:
Jeff.Hamilton@Trade.Gov, Norcia.WardMarin@Trade.Gov.

Frank Spector,
Acting Director--Trade Missions.
[FR Doc. 2014-27399 Filed 11-18-14; 8:45 am]
BILLING CODE 3510-DR-P