Posts Tagged ‘Trade Mission’

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Timely Trade Policy Mission to Japan Yields Insights on Renewable Energy and Smart Grid Business Opportunities

December 27, 2012

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Cora Dickson is a Senior International Trade Specialist in ITA’s Office of Energy and Environmental Industries.

On a windy morning in early December, I stood on an observation platform gazing out over the sea of solar modules, and beyond that, the Pacific Ocean– or more precisely, Matsushima Bay, one of Japan’s “three most scenic spots.”  I was joined on the platform by several U.S. companies, officials and colleagues from the International Trade Administration (ITA) and U.S. Department of Energy (DOE), and workers from the Tohoku Electric Utility who were taking us on a tour of their solar power station.  The view was so breathtaking that it was hard to believe that in March 2011, the land where the solar panels now existed was covered by over 16 feet of water and debris from the tsunami.

International Trade Administration and Department of Energy employees pose for a photo with trade mission participants and workers from the Tohoku Electric Utility on an observation platform above Matsushima Bay in Japan in December 2012.

International Trade Administration and Department of Energy employees pose for a photo with trade mission participants and workers from the Tohoku Electric Utility on an observation platform above Matsushima Bay in Japan in December 2012.

This was the final stop in our “Tohoku (Northeast) Tour” to Fukushima and Miyagi, prefectures that are committing themselves to rebuilding with green technologies after being hit hard by the earthquake and tsunami.  The U.S. companies that signed up for the U.S.-Japan Renewable Energy Policy Business Roundtable in Tokyo on December 3 were given the option to take this tour, which also included courtesy call meetings with officials of both prefectures.

Led by ITA’s Deputy Assistant Secretary for Manufacturing Maureen Smith and DOE’s Deputy Assistant Secretary Phyllis Yoshida, the trade policy mission accomplished its goals: to gain insights into the evolving policy and regulatory landscape for renewable energy and smart grid in Japan.  It was tied to our bilateral discussions, known as the U.S.-Japan Clean Energy Policy Dialogue, allowing private sector input to guide the direction of cooperative activities between our governments.

Prior to the trade mission, my office published a market intelligence brief, “Japan’s Electricity Market and Opportunities for U.S. Renewable Energy and Smart Grid Exporters,” to highlight the complexity yet attractiveness of this burgeoning market.  While Japan is no stranger to renewable energy, it has revisited its policies and incentives due to several factors, including the March 2011 disaster that led to a shutdown of all but two nuclear plants in the country.  There is even talk of structural reform in the electricity sector.

Cora Dickson of the International Trade Administration stands by a sign indicating the high water mark of the floodwaters at the Tohoku Electric Utility's liquified natural gas plant following the March 2011 earthquake and tsunami.

Cora Dickson of the International Trade Administration stands by a sign indicating the high water mark of the floodwaters at the Tohoku Electric Utility’s liquified natural gas plant following the March 2011 earthquake and tsunami.

Another opportunity for U.S. renewable energy and smart grid companies to explore Japan’s market is coming up February 27-March 1 at the World Smart Energy Week in Tokyo, a Commerce certified trade show.  Please contact Takahiko Suzuki if you would like more information.

We will continue to shore up our alliance with the Government of Japan as well as Tohoku communities to promote clean energy.  The Tohoku Tour allowed us to talk with local people about how they envision renewable energy and smart grid technologies will help them manage their energy needs in the wake of the disaster.

On the same grounds of the solar plant in Tohoku, we also briefly visited the 400 MW liquefied natural gas plant operated by the same utility. It had been converted from a coal plant years earlier.  The plant was strong enough to withstand the tsunami, though the workers told of how they retreated to the third floor for several days until the floodwaters receded.  They had no power and they could not contact their families because all the phone towers were also destroyed.

As our bus rolled back towards the city where we would catch the bullet train to return to Tokyo, we saw newly reconstructed houses on the coastline as well as abandoned foundations.  These were solemn reminders that Japan is both vulnerable and resilient, and will take proactive steps towards a better future.  We hope U.S. companies can partner with them to reach their goals.

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Turkish Market Holds Opportunity for U.S. Businesses

December 13, 2012

Kristin Najdi is a Senior International Trade Specialist at the International Trade Administration

Last week, I had the opportunity to accompany Under Secretary of Commerce for International Trade Francisco Sánchez as he led a trade mission of 18 aerospace and defense companies to Ankara and Istanbul, Turkey. The trade mission helped connect U.S. businesses with Turkish partners to identify export opportunities, but also to strengthen the commercial and strategic ties between our two countries.

Strategically positioned at the crossroads of Europe, Asia and the Middle East, Turkey is a high priority market for the United States. With a population of more than 70 million, Turkey continues to be a vital economic hub for the region—with real GDP growth estimated at 8.2 percent in 2011, making it one of the fastest growing economies in the G-20.

President Obama’s April 2009 visit to Turkey – his first overseas trip – emphasized the importance of closer commercial ties between our two countries and continues to reap economic benefits. In fact, total bilateral U.S.-Turkey merchandise trade reached nearly $20 billion last year – an all-time record – and a 34 percent increase over the previous year.

Here at the International Trade Administration (ITA), we take pride in playing a key role in making it easier for U.S. companies to do business around the world, including in Turkey.  To support this effort, Under Secretary Sanchez spoke at “The Ease of Doing Business Symposium” in Ankara, which was co-organized by ITA.  During his presentation he highlighted challenges and opportunities in the Turkish market, and proposed concrete reforms.  He also held various bilateral meetings with his counterparts in the Turkish government to discuss ways of further strengthening our bilateral commercial relations.

Another key outcome of this trip was Under Secretary Sánchez’s announcement of the new U.S. private sector members of the U.S.-Turkey Business Council.  The Council is made up of senior-level executives from the United States and Turkey and provides joint policy recommendations to both governments on ways to strengthen bilateral economic relations.

U.S. businesses on this mission—with their innovative technologies and services—are well- positioned to help support Turkey’s aerospace and defense sectors. For example, the mission included a world leader in the design, manufacture, and marketing of thermal imaging and stabilized camera systems; a company with a strong set of businesses specializing in global infrastructure and finance; and well-known commercial jet and military aerospace manufacturers.

Our mission delegation was especially enthusiastic about the Turkish market for U.S. suppliers seeking joint-venture opportunities, including expanding opportunities for small and medium-sized enterprises in the United States to support the continued modernization of the Turkish Armed Forces.

We also focused on the growing civil aviation market. Turkey, with its strategic geographic location, is located three hours by plane to 1.5 billion people and $23 trillion in GDP, and Turks have increasingly come to rely on domestic and international air service over the past years. Since 2002, there has been a 372 percent increase in domestic passenger traffic, a 77 percent increase in international passenger traffic and a 153 percent increase in total (domestic & international) passenger traffic. Overall, 329 private airline companies operate in the Turkish aerospace industry, 17 of which are Turkish. These companies are creating demand for aircraft parts as well as safety equipment, training and management – all of which are goods and services U.S. companies are well-poised to provide.

This trip was a great success in many respects.  It opened doors for new business opportunities for U.S. companies and continued Commerce’s high-level engagement with the Turkish Government to strengthen our bilateral economic and commercial relationship.

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An Infrastructure Trade Mission to Two Developing Markets

December 4, 2012

Adam S. Wilczewski serves as the Chief of Staff of the International Trade Administration.

Under Secretary of Commerce for International Trade Francisco Sanchez (L) speaks on a panel in Hanoi, Vietnam on November 14, 2012 with (L-R) Ambassador David B, Shear, Leocadia Zak of the U.S. Trade Development Agency and John Moran from the Overseas Private Investment Corporation.

Under Secretary of Commerce for International Trade Francisco Sanchez (L) speaks on a panel in Hanoi, Vietnam on November 14, 2012 with (L-R) Ambassador David B, Shear, Leocadia Zak of the U.S. Trade Development Agency and John Moran from the Overseas Private Investment Corporation.

Asia is home to many of the world’s fastest-growing economies. Countries like China and India readily come to mind. The impressive development of other Asian nations, however, should not be overlooked.

Two countries that have made big economic strides in recent years are Indonesia and Vietnam. They are among the fastest growing countries in the region, with growth rates of 6.5 and 5.9 percent, respectively, in 2011.

Both are members of the Association of Southeast Asian Nations (ASEAN), the bloc of 10 states that forms the United States’ fourth-largest trading partner, making Indonesia and Vietnam important to the U.S economy.

For this reason, the U.S. government is committed to further improving trade relations with both of them.  Under Secretary for International Trade, Francisco Sánchez, recently led an Infrastructure Trade Mission there, underscoring these countries importance.  This trip marked Sánchez’s third visit to Vietnam in 20 months.  Our U.S. Government partners at the U.S. Trade Development Agency and Overseas Private Investment Corporation (OPIC) joined the ITA on this trip for a true whole-of-government effort.

Eight U.S. infrastructure companies – Black and Veatch, Cisco Systems, General Electric Company, Honeywell International, Inc., Oshkosh Corporation, The Shaw Group, Westinghouse Electric Company, and WorleyParsons, LLC – took the opportunity to explore these two foreign markets. Both countries have pressing infrastructure needs due to their high growth rate, offering exciting prospects for U.S companies in that field.

While in Jakarta, Indonesia – our first stop – the delegation met with public and private sector leaders to discuss opportunities that would be mutually beneficial to both of our economies.

Here, OPIC signed a Memorandum of Understanding with the Indonesian Infrastructure Guarantee Fund (IIGF). The organizations pledged to work more closely together to promote private sector infrastructure investment in the world’s fourth most populous country.  A supportive Under Secretary Sánchez stated that “increased investment in infrastructure supported by OPIC will help to accelerate Indonesia’s already-rapid economic growth.”

In Vietnam, the participants met with numerous government officials and representatives from the private sector. Highlights on the agenda included an encounter with the Vietnamese Prime Minister Nguyen Tan Dung and an American Chamber of Commerce hosted lunch in Hanoi.

Most discussions during the trade mission focused on the potential for collaboration on infrastructure projects in areas such as energy, aviation, environmental technology, architecture, construction and engineering.

This Infrastructure Trade Mission is another example of how the U.S. government is working to meet the National Export Initiative’s goal of doubling U.S. exports by the end of 2014.

Southeast Asia is an export market with great potential for U.S. businesses. This growing economic and political importance was underscored by the fact that President Obama chose to visit the region in November directly following his reelection.

Together, working in partnership with the U.S. business community, the International Trade Administration and the entire U.S. Government hope to continue to make progress in meeting infrastructure needs abroad in order to support good-paying jobs here at home.

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An Energy Revolution for Israel

November 9, 2012

David McCormack is an International Trade Specialist in ITA’s Manufacturing and Services unit.

The Oil and Gas Trade Mission to Israel business delegation.

The Oil and Gas Trade Mission to Israel business delegation.

Led by the Acting Deputy Under Secretary of Commerce Ken Hyatt, the U.S. Commerce Department Oil and Gas Trade Mission to Israel introduced 13 companies and 2 universities to the growing oil and gas industry in Israel. The participating organizations included two premier U.S. universities – The University of Texas, Austin and Texas A&M University, Kingsville.  Other Delegates included leaders in oil field services, logistics, consulting, data integration, consulting, and manufacturing.

The mission built on excellent trade relations between the countries, including America’s first ever Free Trade Agreement, signed by the U.S. and Israel in 1985.  More recently, U.S. Senator, Mary Landrieu brought the first ever oil and gas Certified Trade Mission to Israel in 2011, and the Government of Israel sent an inter-ministerial delegation to the U.S., earlier this year to see extensive energy development firsthand. Finally, on October 24, the US-Israel Joint Economic Development Group (JEDG) met in Washington, chaired by U.S. Treasury Secretary, Tim Geithner, and Israeli Treasury Director-General Doron Cohen.  A main topic of discussion was enhanced U.S.-Israel cooperation for natural gas development.  As the JEDG signed an agreement that will extend U.S. loan guarantees of $3.8 billion to Israel to 2016, the trade mission to Israel departed for Tel Aviv to explore the histroric opportunities to help build Israel’s new energy economy.

According to a 2010 United States Geological Survey (USGS) assessment, the Eastern Mediterranean contains approximately 122 trillion cubic feet (tcf) of natural gas, with a current market value of $240 billion. Industry representatives also report that they expect to discover oil in these offshore fields.  Finally, exploration efforts are also ongoing onshore Israel, creating opportunities for manufacturing, drilling, pipeline installation, etc.  Without a developed infrastructure to produce enough of their own energy domestically, Israel has historically been an energy importer. This will not always be the case, and many have recognized that these recent developments represent an energy revolution.  Many expect Israel to become a net energy exporter, but right now, extensive infrastructure and devlopment is needed.  U.S. companies are ready to deliver.

Hosted in Israel by Senior Commercial Officer Maria Andrews, the trade mission delegates attended the 2012 Israel Energy and Business Convention (IEBC), conducted site visits, attended receptions, participated in a roundtable discussion with Israel’s oil and gas industry, and participated in more than 100 customized business meetings.  The official program began at the IEBC, where Hyatt delivered a speech at the opening ceremony, and the U.S delegation was warmly received.

At the roundtable discussion hosted by Hyatt, Senator Mary Landrieu, and the Chair of Israel’s oil and gas association, Uri Aldubi, the delegation received presentations from Noble Energy, Zion Oil, and Genie Energy.  Noble briefed the delegation on their discoveries of around 30 trillion cubic feet of gas offshore Israel, and their future hopes for more gas, as well as oil, discoveries.  Zion, the largest onshore petroleum exploration leaseholder in Israel, spoke about how to do business in Israel, as a U.S. company, and their optimistic outlook towards Israel’s onshore potential.  Finally, Harold Vinegar, from Genie Energy, shared his vision for the development of oil shale in Israel.  Vinegar, formerly a Chief Scientist at Shell, stunned the crowd with his estimate of 250 billion barrels of recoverable oil in Israel’s shale deposits.  That evening, U.S. Ambassador to Israel, Daniel Shapiro, hosted the delegation at his residence for an exclusive networking reception with the leaders of Israel’s new energy economy.

Thanks to the efforts of the Commercial Service in Tel Aviv, the delegation received a rare and intimate tour of the port of Ashdod, and discussed opportunities in pipeline installation and logistics with port authorities.  Keeping a full schedule, they also attended government meetings in Jerusalem, and a high-level presentation and networking session, with industry and government leaders, hosted by the Herzliya Conference, and the Law Firm of Heideman Nudelman & Kalik, a CS Strategic Partner.

While in Israel, Hyatt met with several key government offices, including the Ministry of Energy and Water Resources, the Ministry of Trade, and the Office of the Prime Minister

U.S. Senator Mary Landrieu highlighted the opportunities for academic cooperation between the U.S. and Israel.  There are almost no Israeli born petroleum engineers still in Israel.  Universities in the Gulf states represent the best programs in petroleum and gas engineering, and specialized energy MBA’s in the world.  The 2011 and 2012 Oil and Gas Trade Missions to Israel are laying the groundwork for Israel’s energy industry by bringing advanced petroleum and gas engineering programs to Israel.

The delegates completed the mission feeling optimistic about the commercial opportunities in this sector.  The companies realize that doing business in Israel is often a long-term proposition and this will be the first of hopefully many visits to Israel that the companies will make.  The U.S. Commercial Service and our Strategic Partners are standing by to assist U.S. firms in accessing the historic opportunities represented by Israel’s energy revolution.

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Trade and Investment Mission to Tunisia Follow Up

April 11, 2011

Chris Wilken is the North Africa Desk Officer for Market Access and Compliance.

At least half of the companies returning from a recent trade mission to  Tunisia have reported promising leads, indicating that they intend to return to the country to finalize deals. Ten U.S. companies participated in the Trade & Investment Mission, organized by the Department of State and joined by Assistant Secretary of Commerce Suresh Kumar.  Mission participants included companies in renewable energy, private equity, defense/security, and telecommunications sectors.  Companies had more than 70 meetings with potential local partners and Tunisian government officials.   The goal of the trade mission was to foster ties between the American and Tunisian private sectors so that U.S. companies participate in Tunisia’s successful political transition.

Tunisia’s recent political changes have dramatically improved the business environment for American companies.  The trade mission members were told by the new Tunisian officials of the high regard they hold for U.S. companies and their desire to see an increased U.S. business presence in the country.  Government officials also indicated that they wish to move forward on a number of pro-business economic reforms.  There is also a major push in Tunisia to focus on the prevention of corruption, a major grievance leading to the departure of President Ben Ali.

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Leading the Way for Global Higher Education

March 31, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade

Today we depart for Jakarta, Indonesia for the first leg of the largest Commerce-led education trade mission ever. I am excited for this mission as we are bringing 56 colleges and universities to explore the opportunities to recruit international students to study in the U.S. as well as possibly setting up partnership and student and faculty exchanges.

I was excited to host my very first Twitter chat earlier today and I was happy to answer questions such as, how are foreign students studying in the U.S. an export and why were Vietnam and Indonesia targeted for this mission. To each, I answered that when foreign students come to study in the United States, their tuition and fees, as well as their living expenses help support the local economy in addition to the national economy. Education services ranks among the top 10 U.S. service exports, right between environmental services and safety and security. These two countries place a high value on higher education and have tremendous potential for sending students to the United States.  And, in Indonesia, boosting the number of Indonesian students studying in the United States is a top priority of the U.S. Embassy.
 
Building ties with international students not only helps our American students gain a greater level of international understanding—a critical skill for success in the 21st century global economy—but familiarizes future global leaders with the American people and U.S. society.

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