U.S. Government
Advocacy Guidelines
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Ahora,
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Purpose
The goal of U.S. Government (USG) advocacy
assistance is to expand U.S. exports and export-related
employment as a means to promote U.S. economic
health and well-being. The following advocacy
guidelines are to assist USG personnel in determining
whether and to what extent USG support is appropriate
in connection with a transaction involving U.S.
interests.
Background Information
USG officials, particularly in our embassies
abroad, frequently approach foreign governments
on behalf of U.S. commercial interests. In this
connection, however, they are often faced with
requests to intervene in support of private
parties to proposed transactions in which there
is some question as to the degree and nature
of U.S. participation and/or interest.
USG export promotion policy has historically
looked to U.S. incorporation and U.S. export
content in determining whether USG support is
appropriate in a particular instance. The increasingly
complex nature of international commercial transactions
now necessitates revisiting the issue of which
factors should be considered in determining
whether or not to provide USG advocacy support
in any given circumstance. The guidelines that
follow are provided to ambassadors and embassy
commercial personnel for the purpose of assisting
in these determinations on a case-by-case basis.
The issues that arise with respect to any individual
transaction may include, for example: determining
whether to support any bid in which the goods
or services to be delivered do not contain the
traditional U.S. export content level of more
than 50 percent; determining whether to support
a bid by a foreign-owned, U.S.-incorporated
firm that may or may not contain more than 50
percent U.S. export content; differentiating
between or among bids by more than one U.S.
firm, bids by foreign subsidiaries of U.S. firms,
and bids by various consortia where differences
in the degree of U.S. participation and viability
of the bid may or may not be significant. The
guidelines below place a premium on U.S. export
content, including employment, in the determination
of whether and to what extent a given bid is
to be considered in the U.S. national interest.
While any bid meeting the 50 percent U.S. export
content threshold is presumed to be in the national
interest, bids with lesser U.S. export content
may, under certain circumstances, also be determined
to be deserving of comparable, nondiscriminatory
treatment by the USG. Conversely, USG support
for a bid may not be in the national interest
- even if the bid contains greater than 50 percent
U.S. content - if, for example, the bidding
firm's home market is closed to U.S. firms.
Obviously, no guidelines can address dispositively
all possible fact situations likely to be faced
by posts abroad. Therefore, in particularly
complex cases, consultations with interested
Washington agencies may be required before a
determination can be reached.
Eligibility for USG Advocacy
1.) The overall basis for determining the nature
and extent of USG support for a viable bid or
proposal in connection with an international
transaction shall be the U.S. national interest.
A U.S. national interest determination will
first weigh and assess the foreseeable, material
benefits to the U.S. economy that may potentially
be derived from a transaction and assess the
merit of a request for USG support of any bid
or proposal made in connection with the transaction.
2.) A bid or proposal in which the U.S. content
of the goods or services to be provided exceeds
50 percent of the total value (including material,
equipment and labor) shall be presumed to be
in the U.S. national interest.
3.) In cases where the U.S. content does not
exceed 50 percent, the following factors, often
associated with U.S. ownership, may be considered
in determining whether USG support of a bid
or proposal is in the U.S. national interest:
- U.S. materials and equipment content;
- U.S. labor content;
- Contribution to the U.S. technology base,
including conduct of research and development
in the U.S.;
- Repatriation of profits to the U.S. economy;
and
- Potential for follow-on business that would
benefit the U.S. economy.
The USG may determine that a bid or proposal
that meets one or more of the above factors
in a clear and substantial way is in the U.S.
national interest.
4.) All bids or proposals that are determined
to be in the U.S. national interest under paragraphs
2 or 3 above shall be supported by the USG in
an equal, nondiscriminatory manner, except in
the case of foreign and foreign-controlled bidders.
In these instances, the USG may take into account,
with respect to the relevant product or service,
the absence of competitive opportunities for
U.S. firms in the bidder's home market that
are substantially equivalent to those available
in the U.S. market for like products or services,
as reflected in National Trade Estimate Reports
on Foreign Trade Barriers prepared by the Office
of the United States Trade Representative.
5.) It shall be the responsibility of the firm
or entity seeking USG support to advise the
post in a timely manner of its interest. Firms
should be prepared to substantiate to the satisfaction
of the post the applicability of the above criteria,
with documentation (when necessary and appropriate).
Firms may be informed that their failure to
provide such information in a timely manner
may preclude USG support.
6.) A firm seeking USG support must agree that
it and its affiliates:
A. have not and will not engage in the bribery
of foreign officials in connection with the
matter for which advocacy assistance is being
sought; and
B. maintain and enforce a policy that prohibits
the bribery of foreign officials.
The firm must further acknowledge that failure
to comply with the terms of the agreement
may result in the denial of advocacy assistance.
7.) In complex or sensitive transactions (including
those specifically referred to in the fourth
paragraph), the post should consult with interested
Washington agencies for advice on a case-by-case
basis.
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