[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25302-25306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10784]
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DEPARTMENT OF COMMERCE
International Trade Administration
Executive-Led Eurasian Trade Mission
AGENCY: International Trade Administration, Commerce.
ACTION: Update.
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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 from June 20-24, 2011. This Executive led mission
will include representatives from a variety of U.S. firms specializing
in, but not limited to the following Industries:
Oil and Gas
Medical and Health Care
Information and Communication Technologies (ICT)
Environmental Technologies
Shipping Transportation and Freight Forwarding
Mission participants will be introduced to international agents,
distributors, and end-users whose capabilities and services are
targeted to each participant's needs. This mission will contribute to
National Export Initiative goals through increased sales of oil and gas
equipment/services; information and communication technologies, medical
and health care, environmental technologies, shipping transportation
and freight forwarding, etc. in Turkey and Kazakhstan.
Participants will have an opportunity to meet with major
international companies, integrated service providers, potential agents
and distributors as well as potential public and private buyers in
Istanbul and Ankara, Turkey and Almaty, Kazakhstan. The mission will
include matchmaking meetings in different cities including site visits
of commercial interest. We are targeting 15 U.S. company
representatives responsible for their corporate activity in Eurasia.
Commercial Setting--Turkey
Turkey, the world's 17th largest economy, is a major consumer of
oil and gas. Although oil and gas produced in Turkey currently meets
only a small fraction of the country's demand, there are significant
prospects offshore in the Black Sea, and onshore in the Thrace region
of western Turkey, and the East and Southeast. Between 2002 and 2009,
747 wells were drilled. In 2009 alone, $716 million was spent for oil
and gas exploration and production in Turkey. As of today, only 20% of
onshore prospects and 1% of offshore prospects have been explored.
Chevron and ExxonMobil announced important exploration efforts in 2009
and 2010 in the Western Black Sea Region. Companies offering
technologies and services for exploration and production can also find
a market in the geothermal sector: Turkey ranks No.1 in Europe and 7 in
the world in terms of geothermal power potential.
Turkey is a crucial corridor between the energy-rich Caspian and
Middle East and Europe. The planned 3,300 km NABUCCO natural gas
pipeline will link Caspian and Middle Eastern suppliers through Turkey
to Central Europe, and will create major opportunities for U.S.
companies. The total capacity of the pipeline will be 25 to 31 BCMA.
Estimated investment costs including financing costs for the entire
pipeline system will be well over $10 billion. Other potential pipeline
projects include Italy--Greece--Turkey Interconnector (ITGI) and Trans
Adriatic Pipeline (TAP).
In addition to oil and gas exploration and production activities
and pipelines, new refinery and petrochemical plants are planned over
the next decade, with a projected increase of over 90% in refining
capacity by 2019, to over 1.3 million BPD.
Turkey's oil and gas market provides excellent opportunities for
U.S. companies within the following product areas:
1. Offshore and onshore oil and gas exploration and production
equipment and services,
2. 2-D and 3-D Seismic equipment and engineering services,
3. Shale gas exploration and production equipment and services,
4. Horizontal Drilling equipment and services,
5. Petrochemical processing equipment and services,
6. Geothermal energy exploration and drilling equipment and
engineering services,
7. Coal-bed methane production equipment and services,
8. Compressors, turbines, measuring meters, SCADA systems, and
pumps for pipelines,
9. Pipeline construction equipment and engineering services,
10. Refinery processing equipment and refinery auxiliary units,
11. Oil and Gas Storage Systems.
[[Page 25303]]
Turkey has a population of approximately 75 million people and is a
growing market for the medical products and services sectors. The
Ministry of Health (MOH) is the largest provider of healthcare and the
only public provider of preventive services in Turkey. At a national
level, MOH is responsible for the country's health policy and health
services. In fiscal year (FY) 2011, approximately $11.5 billion was
allocated to the Turkish Ministry of Health (MOH) by the Government of
Turkey (GOT). The MOH budget showed an increase of 40% year over year.
A key driver behind Turkey's continued double-digit growth in health
expenditure is the country's improved health insurance coverage. The
implementation of state-funded health insurance for the lowest earners
is expected to make a significant contribution to continued health
expenditure growth over the next five years.
The construction of many private hospitals offers increased sales
opportunities and less complicated procurement requirements compared to
the confusing tender requirements used by government agencies. The
Ministry of Health is also pursuing a number of Public Private
Partnership (PPP) projects with Turkish and foreign companies to
establish healthcare campuses, large medical complexes with several
hospitals, labs and recreational areas, in large cities. These projects
are also business opportunities for U.S. medical companies and
healthcare service providers.
The Republic of Turkey has a number of private care facilities
focused on cardiovascular care, OBGYN, orthopedics and minimally
invasive outpatient ambulatory procedures. A number of private
hospitals are procuring angio-cath, radiological equipment and advanced
surgical and life support technologies. The procurement of air
ambulances and diagnostic medical devices is also being considered. The
MOH is working to establish a Council of Pharmaceuticals and Medical
Devices, which will be independent from the MOH with the authority to
regulate and control the medical equipment, pharmaceuticals, cosmetics
market in Turkey.
Medical tourism is a new sector developing in Turkey. Increasingly,
patients from Europe and the Middle East go to Turkey for medical
treatment, as private healthcare is becoming more affordable. Turkey
has become a popular destination for health care among these countries
because most of the patients have already vacationed in Turkey and are
comfortable with the country's infrastructure.
Currently, medical procedures in demand vary from simple procedures
to fertility treatment, cosmetic surgery, and laser surgery. The most
popular procedures are cosmetic and dental procedures, yet Turkey also
has a good reputation in cardiology, ophthalmology, endocrinology,
gastroenterology, rheumatology, nephrology, oncology, neurology,
dermatology, gynecology/obstetrics, orthopedics, organ transplantation,
and otolaryngology (ear, nose & throat). Some of these surgeries have
long waiting lists in European countries, which is another reason why
Turkey is an attractive country for medical procedures.
Turkey's health care market provides excellent opportunities for
U.S. companies within the following product areas:
Disposable products
Advanced med/surgery equipment including angio-cath facilities
Radiology and pathology
Advanced diagnostics systems
Optical devices
Parts and components of medical devices
Electronic instruments and appliances for physical and
chemical analysis
Vaccines
Orthotic and prosthetic equipment
OR/ER systems
Dental equipment and devices
Turkey's Information Communication Technologies (ICT) market size
is estimated to have reached $27.3 billion in 2010, with a breakdown of
$20 billion in Telecommunications and 7.3 billion USD in Information
Technologies. The Turkish ICT market continues its rise as one of the
key growth markets in Turkey with an estimated growth of 8-10% for
2011, despite the economic global crisis.
Current PC penetration levels are estimated at 15%, but the
Government aims for computer ownership at 51% and Internet usage at 48%
by 2013. Meanwhile, a survey of Turkish primary and secondary schools
showed that in 40% of schools, computers are still not integrated into
education.
This is expected to significantly increase as the Ministry of
Education plans to increase the number of computers and Internet
connection. Schools in remote areas are to be connected to the net
through satellite with the cooperation of the Turkish satellite company
Turksat.
The consumer electronics market has significantly increased its
share in the market. The consumer electronics market in Turkey is
estimated at 3 billion USD. While the rest of the world averaged an
increase of 10% in the consumer electronics market, Turkey averaged 35%
annual growth in 2010.
In the Telecommunications market, Turk Telekom has 17.3 million
fixed line subscribers, 6 million ADSL lines and 12.4 million GSM
mobile subscribers through AVEA. Turk Telekom owns 99.9% of TTnet,
Argela, Innova, Sebit, Sobee ve AssisTT companies. It also owns 81% of
AVEA, one of the three GSM mobile operators in Turkey. Turk Telekom is
the minority share of ALBtelecom in Albania. 55% of the shares of Turk
Telekom belong to Ojer Telecom Inc. and 30% belongs to the Turkish
Treasury. The remaining 15% is floated in the Istanbul Stock Exchange
(IMKB). The value of Turk Telekom was over US $15 billion in 2010.
Turk Telekom will invest $3.42 billion thru 2010 for its Next
Generation Network (NGN) project and will also replace its rural area
switches with small telephone switches over 10,200 switch centers. Turk
Telekom is in the process of introducing IP TV. Fixed line subscribers
can now change their operators without changing their phone numbers as
a result of the fixed line number portability regulation, which came
into force in September 2009.
The three GSM cellular operators, Turkcell, Vodafone and AVEA and
the fixed line operator Turk Telekom invested in equipment and services
at a total value of $2-3 billion to expand their services. Turkcell has
almost 36 million subscribers (56.6% of the total GSM cellular
subscribers), Vodafone has 15 million (24.5% of the subscribers) and
AVEA has 12 million almost 18.9% of the subscribers.
The total number of GSM cellular service subscribers reached almost
to 64 million with an approximate penetration rate of almost 89%. The
total telecom equipment and service market grew to $19.3 billion and is
expected to expand in 2010 as the GSM sector is the driving force and
the subscribers are expected to use more and more 3G services. Total
number of 3G subscribers reached to almost 6 million while 2G
subscribers decreased to 58 million. Fixed line subscribers are almost
17 million, reaching almost 100% penetration per house basis.
Subscriber penetration for fix line is 23.5% and is not expected to
increase anymore due to hard competition from the GSM cellular
operators.
With the introduction of 3G last year; IPTV, online services,
content and media services, E-business, personalized services, music
download, games, multi-play, video services, and other mobile
[[Page 25304]]
entertainment, has been developing rapidly, creating new business areas
and revenues. BTK (Turkish Telecom Authority) is expected to conduct
tenders for WiMax licenses in 2011.
Over 40 private long distance telephone companies have been also
operating over the last 5 years, mostly using VoIP via an
interconnection agreement with Turk Telekom. Some of these companies
have established or continue to establish their own network.
This attractive consumer electronics trend has lured many
international and national electronic retail supermarkets. German
Mediamarkt, British Electro World, Turkish Teknosa, Vatanbilgisayar and
Gold Bilgisayar have been competing for a number of years in Turkey.
Turkey's ICT market provides excellent opportunities for U.S.
companies within the following product areas:
Consumer Electronics
Notebook PC's
Audio Visual Equipment
Wireless equipment/services
IPTV
WiMax (awaiting law)
VDSL
3G & 4G related technologies/services
Commercial Setting--Kazakhstan
Kazakhstan has the Caspian Sea region's largest recoverable crude
oil reserves and accounts for approximately two-thirds of the roughly
1.8 million barrels per day (bpd) currently being produced in the
region. The Government of Kazakhstan and foreign investors continue to
focus heavily on the hydrocarbons sector, which so far has received
approximately 60% of the estimated $58 billion in foreign direct
investment in Kazakhstan since 1991, and makes up approximately 53% of
its export revenue. Existing oil extraction sites offshore in the North
Caspian, combined with onshore fields currently under development, mark
Kazakhstan as a potentially major near-term oil exporter. Already its
oil production has reached 1.4 million bpd, with daily output expected
to total 2.6 million bpd by 2015. As a result, foreign investors are
increasing their focus in its energy infrastructure, including oil
transportation routes such as the Baku-Tbilisi-Ceyhan pipeline.
Oil industry sources estimate that Kazakhstan could eventually
attract up to $140 billion of foreign investment in its oil
infrastructure. Industry experts and the U.S. Commercial Service in
Almaty estimate that the current market for oil and gas field equipment
and services will grow to $7.5 billion in 2010, and will continue
growing at 15-20% annually over the next three years. Kazakhstan as yet
has no experience in offshore production and operations. This
experience gap offers many opportunities for U.S. service companies in
rig work, support infrastructure, and environmentally sensitive
technologies. The Caspian Basin's oil-bearing formations are generally
quite deep (15,000 feet), under considerable pressure, and often
contain a high degree of sulfur and other contaminants, making special
drilling and processing equipment necessary. Additionally, U.S. oil and
gas field equipment suppliers have the potential for solid growth over
the next decade as new fields are brought on-stream and secondary
recovery methods are introduced to existing deposits.
Kazakhstan's oil and gas market provides excellent opportunities
for U.S. companies within the following product areas:
1. Oil and Gas Well Development;
2. Field Operation;
3. Offshore Oil and Gas Exploration/Exploitation Equipment;
4. Gathering, Treatment, Transportation and Storage of Oil,
Petrochemical Products and Natural Gas;
5. Pumps, Fittings and Valves;
6. Gas Detection and Monitoring Systems;
7. Oil and Gas Field Chemicals;
8. Pipeline Construction Equipment; and
9. Pipeline Corrosion Controls.
Healthcare Sector
The sustainable growth of Kazakhstan's economy during the past
years is reflected in all sectors of the country's economy, including
healthcare. Providing the population with quality healthcare services
is one of the government's priority tasks. Around USD2.8 and USD2.5
billion were allocated for healthcare sector from the state budget in
2010 and 2011 respectively. Role of the government is very significant,
80% of healthcare institutions in Kazakhstan are state-owned thus the
principal end-users of medical equipment are state-owned healthcare
institutions. Every year the government spends approximately USD170-200
million for purchasing medical equipment. Local production is
relatively insignificant. Local manufacturers produce basic medical
equipment that do not require innovative technologies. Market demand
for specific complex medical equipment is met entirely by imports which
makes up 90% of total market.
The most demanded medical equipment and services include:
Diagnostic equipment;
Medical lasers;
Endoscope;
Surgery equipment.
The pharmaceutical market is one of the most stable markets in
Kazakhstan and has not been significantly affected by the economic
crisis. In 2009, its volume amounted to approximately $800 million with
a 2% market growth. Local production is estimated as 12% of the total
pharmaceutical market. According to statistics, government purchases in
Kazakhstan in 2009 are estimated at $368.2 million. The share of local
manufacturers in government purchases is estimated at 11.8%. State
procurement in 2009 can be broken down into three categories as
follows: Hospital purchases at 49%, ambulatory purchases at 30%, and
centralized purchases made by the Ministry of Health at 21%. The
population of Kazakhstan in 2009 was estimated at 16.2 million with
70.2% of the population aged between 15 and 65 years. Approximately
7.9% of the population is over 65 and 21.8% is under 15 years of age.
Based on market statistics, U.S. companies producing the following
pharmaceutical products have strong prospects:
Systemic antibacterials,
Oncology medications,
Antihemorrhagics,
Anti-diabetic medications, and/or
Vaccines,
Blood substitutes and perfusion solutions.
Telecommunication Market
The telecommunications sector remains one of the most dynamic and
fastest developing sectors in Kazakhstan's economy. The country's
telecom revenues in 2009 amounted to $2.8 billion, a 8.3% increase from
2008.
The following segments make up the telecommunication market in
Kazakhstan: Mobile communications, fixed line communications, Internet
and Data Transmission, Radio and TV broadcasting.
The market breakdown in 2009:
Mobile Communications--52.8%
Fixed Line Communications--20.1%
Internet--8.5%
Data Transmission--2.2%
TV Broadcasting--3.1%
Other--13.4%
In 2005, the government of Kazakhstan adopted a law that sought to
demonopolize and liberalize the telecommunications market. The program
was aimed at decreasing the monopoly of Kazakhtelecom, Kazakhstan's
leading telecom operator (and over 50% government owned). Its
[[Page 25305]]
main provision was to provide all operators equal access to the
country's telecommunications network and to initiate a system of
alternative operators of international and long-distance services (by
abolishing Kazakhtelecom's exclusive license). In reality, the program
has had little impact on Kazakhtelecom's dominance, as the firm still
has a monopoly on telecommunication services, which has resulted in
high tariffs for long distance and international phone communications
and Internet access. There is a hope that Kazakhstan's goal to enter
the World Trade Organization will positively impact the current
situation in regards to market liberalization, as it will require the
government to reexamine its regulatory oversight, which is currently
fragmented.
Based on the government program on Development of the
Telecommunication Sector, the best prospects for U.S. suppliers of the
telecommunication equipment are:
3G telecommunication equipment (WiMAX);
TV digital broadcasting equipment;
Satellite telecommunication systems for providing Internet
access and phone communication in remote areas;
Equipment for digitization of the existing
telecommunication networks including digital and/or interactive TV
systems working on a frequency of 40 GHz and more.
Equipment for DWDM technologies.
Mission Goals
The trade mission will assist representatives of American companies
responsible for business activity in Eurasia with their efforts to
identify profitable opportunities and new markets for their respective
U.S. companies and to increase their export potential. The summary of
results expected from the mission includes finding potential partners,
agents and distributors, joint venture partners, and provide market
knowledge for future expansion.
Mission Scenario
In Kazakhstan, mission members will be presented with a briefing by
the U.S. Embassy's Commercial Officer, the sector specialists and other
key Kazakh government and corporate officials. Participants will also
take part in business matchmaking appointments with Kazakhstani private
sector companies.
In Turkey, mission members will also be presented with a briefing
by the U.S. Embassy's Commercial Officer, the Commercial Specialist for
the various sectors represented and other key Turkish government and
corporate officials. Participants will take part in business
matchmaking appointments with Turkish private sector companies, which
would be potential candidates for agent/representative or distributor.
Depending on the availability, potential buyers may also be scheduled
for meetings. The venue will be Ankara, the capital of Turkey where the
public sector is headquartered and Istanbul where headquarters of most
of the private sector is located.
U.S. participants will be counseled before and after the mission by
the domestic mission coordinator. Participation in the mission will
include the following:
Pre-travel Webinars on subjects ranging from industry
briefings to business practices in Turkey and Kazakhstan.
Pre-scheduled meetings with potential partners,
distributors, end users, or local industry contacts in Istanbul and
Ankara, Turkey;
Transportation to and from all airports and all mission-
organized meetings, excluding air transport;
Meetings with key Kazakh and Turkish Government decision
makers and private sector firms;
Participation in networking receptions in Turkey and
Kazakhstan; and
Meetings with CS Turkey's and CS Kazakhstan's sector
specialists in Istanbul and Ankara, Turkey and Almaty, Kazakhstan.
Mission Timetable
Mission participants will arrive in Almaty, Kazakhstan on Sunday,
June 19, 2011 and the mission program will take place from June 20-24,
2011. Departure to the United States or other onward destinations will
be on Saturday, June 25, 2011.
Sunday, June 19, 2011
Almaty, Kazakhstan
Arrival in Almaty, Kazakhstan
Day 1
Monday, June 20, 2011
Almaty, Kazakhstan
Agenda Review and Market briefings by U.S. Embassy
officials
Matchmaking Meetings
Networking Reception
Day 2
Tuesday, June 21, 2011
Almaty, Kazakhstan
Possible Site Visit
Matchmaking Meetings
Day 3
Wednesday, June 22, 2011
Istanbul, Turkey
Morning departure to Istanbul
Arrive Istanbul at noon
Afternoon Embassy Briefing
Industry Briefing
Evening reception hosted by Consul General
Day 4
Thursday, June 23, 2011
Istanbul-Ankara, Turkey
One-on-one matchmaking meetings with potential agents,
distributors or partners
Evening Departure to Ankara
Day 5
Friday, June 24, 2011
Ankara, Turkey
1-1 matchmaking meetings (afternoon)
Sector briefings
Evening Networking Reception at Ambassador's Residence
Day 6
Saturday, June 25, 2011
Ankara-Istanbul, Turkey
Departure to Istanbul or to Europe for U.S. flights or
weekend touristic site visits in Istanbul
Participation Requirements
All parties interested in participating in the Commercial Service
Eurasian Trade Mission 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 15 and a maximum
of 20 companies will be selected to participate in the mission from the
applicant pool. U.S. companies already doing business with Turkey and
Kazakhstan as well as U.S. companies seeking to enter these markets 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. Participation fee will be as follows:
SME \1\ all stop cost: $3,160.
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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 http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). 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 http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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[[Page 25306]]
Large company all stop cost: $4,585.
One country cost: At actual rate only upon request.
Expenses for travel, lodging, most meals, and incidentals will be
the responsibility of each mission participant. Delegation members will
be able to take advantage of Embassy rates for hotel rooms.
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 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 United States, or, if not, marketed under the name of a U.S. firm
and have at least 51 percent U.S. content of the value of the finished
product or service.
Selection Criteria for Participation: Selection will be based on
the following criteria:
Suitability of the company's products or services to the
Eurasian Region equipment and services market;
Diversity of company size, type, location, demographics
and traditional under representation in business in Turkey and
Kazakhstan, including likelihood of exports resulting from the mission;
Consistency of the applicant's goals and objectives with
the stated scope of the mission. 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 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,
direct outreach to internal clients and distribution lists, posting in
the Federal Register, and announcements at industry meetings, symposia,
conferences, and trade shows.
The Department of Commerce International Trade Administration (ITA)
is amending the January 5, 2011 Federal Register Notice (76 FR 537,
Jan. 5, 2011) announcing the executive-led Oil & Gas Equipment and
Services Mission to Kazakhstan and Turkey from June 20-24, 2011 to
extend the deadline from April 29, 2011 to May 7, 2011 for applications
for representatives of U.S. firms to participate in the mission.
Because of the need for participants to make flight arrangements and
obtain visas, ITA will review applications and making participation
decisions on a rolling basis starting April 29th. We will inform
applicants of selection decisions as soon as possible after April 29,
2011. Applications received after May 6, 2011 will be considered only
if space and scheduling constraints permit.
Interested individuals are encouraged to apply as soon as possible.
Participation is limited to a maximum of 20 companies.
Contact Information
U.S. Commercial Service Domestic Contact
Brendan Kelly, Tel: 713-209-3113, E-mail: [email protected].
Jessica Arnold, Tel: 202-482-1841, E-mail:
[email protected].
U.S. Commercial Service Almaty, Kazakhstan
Jennifer Kane, Senior Commercial Officer or Azhar Kadrzhanova,
Commercial Specialist, U.S. Consulate General--Almaty, 41 Kazybek bi
Street, Almaty 050010, Kazakhstan, Tel.: +7 (727) 250-7612, Fax: +7
(727) 250-0777, E-mail: [email protected] .
U.S. Commercial Service Ankara, Turkey
Michael Lally, Senior Commercial Officer or Serdar Cetinkaya,
Senior Commercial Specialist, U.S. Embassy--Ankara, Tel: +90 (312) 457-
7203, Fax: +90 (312) 457-7302, E-mail: [email protected].
U.S. Commercial Service Istanbul, Turkey Gregory Taevs, Principal
Commercial Officer, Tel: +90 (212) 335-9302, Fax: +90 (212) 335-9103,
E-mail: [email protected].
Elnora Moye,
Commercial Service Trade Mission Program, U.S. Department of Commerce.
[FR Doc. 2011-10784 Filed 5-3-11; 8:45 am]
BILLING CODE 3510-FP-P