Mission Statement
Assistant Secretarial Business Development Mission
Morocco and Egypt
May 25- June 2, 2003

I. DESCRIPTION OF THE MISSION

Assistant Secretary of Commerce and Director General (AS/DG) of the U.S. and Foreign Commercial Service Maria Cino will lead a senior-level business development trade mission to Morocco and Egypt. The overall focus of the trip will be commercial opportunities for U.S. companies, including joint ventures and export opportunities. In Morocco, the participants will have 2 days of one-on-one business meetings with potential buyers/partners in Casablanca and 1 day in Rabat with government officials. In Egypt, the participants will have 2 days of one-on-one business meetings with potential buyers/partners and government officials in Cairo.

II. COMMERCIAL SETTING FOR THE MISSION

Morocco

The United States and Morocco have been working closely together since 1995 to promote closer
economic ties, freer trade and strong investment climates. On April 23, 2002, President George Bush and King Mohamed VI agreed that the U.S. and Morocco would negotiate a Free Trade Agreement (FTA). Negotiations are expected to begin in January 2003. A U.S.-Morocco FTA would generate export opportunities for U.S. goods in a number of important sectors. In addition, Morocco has begun implementing an association agreement with the European Union (EU), which provides preferential tariff treatment for Moroccan industrial exports to the EU, thereby giving American producers that set up manufacturing operations in Morocco duty free access to the European market. Over the past six years, U.S. exports to Morocco averaged $475 million annually, with leading exports including aircraft, corn and machinery. Because of its strategic location, moderate political and social climate and developed infrastructure, Morocco is increasingly seen as a regional hub. Additionally, the EU association agreement has spurred manufacturing development in Morocco, an activity that will be heightened under a U.S. Morocco FTA.

The Moroccan government has undertaken a strong economic reform program that has included the liberalization of the telecommunications sector and the establishment of an ambitious plan to develop the Moroccan tourism sector with the aid of outside investment. The Government of Morocco, with the public support of King Mohamed, has launched an initiative designed to streamline investment procedures and eliminate barriers to foreign and domestic investment in the Moroccan economy. The Moroccan business community has also been energized by the recent appointment of a strongly pro-business Prime Minister.

Egypt

At 68 million, Egypt is by far the largest Arab country by population. It sits in the heart of the Middle East and has a reasonably well-educated labor force. Egypt's economy, traditionally associated with agriculture (particularly cotton) and tourism has become much more diverse.
The U.S. is Egypt's largest bilateral trading partner, and Egypt is our fourth largest trading partner in the region. Foreign debt and debt service remain low, with most debt long-term and concessional. Foreign exchange reserves cover more than 10 months of imports. The outlook for some sectors of the economy, particularly tourism and gas, is bright, although tourism remains subject to global and regional shocks. The U.S. is also the second largest investor in Egypt, after the United Kingdom. U.S. investment is primarily in the oil and gas sector, but can also be seen in consumer goods, automobile production, and financial services. The U.S. Government has worked closely with Egypt on its economic reform program, and is its largest bilateral aid donor. U.S. non-military economic assistance to Egypt in 2001 was approximately $700 million. Egypt is the largest single market worldwide for American wheat and a significant importer of other agricultural commodities, machinery, and equipment.

Egypt and the U.S. signed a Trade and Investment Framework Agreement (TIFA) in 1999. The TIFA provides a forum to improve access for U.S. products and services, tackle impediments to trade and help expand commercial and investment opportunities.

Best Industry Prospects for Morocco and Egypt

The best industry sectors for the missions to Morocco and Egypt are car parts, tourism infrastructure, information and communication technology (IT), agribusiness (including canning and machinery for the fishing industry), and aeronautics.

III. GOALS FOR THE MISSION

The trade mission will further both U.S. commercial policy objectives and advance specific business interests. It is aimed at:

IV. SCENARIO FOR THE MISSION

The tentative trip itinerary will be as follows:
May 25- Arrive Casablanca, Morocco.
May 26, 27- Hold trade mission activities in Casablanca.
May 27- Depart Casablanca/Arrive Rabat.
May 28- Hold trade mission activities in Rabat.
May 29- Business appointments and/or Cultural Site visits in Rabat or Marrakech.
May 30- Depart Rabat/Arrive Cairo Egypt.
May 31, Cultural site visits in Cairo.
June 1, 2- Hold trade mission activities in Cairo.
June 3- Depart Cairo/Arrive Washington D.C.

The precise schedule will depend in part on the availability of local government and business officials and the specific goals of the mission participants.

V. SELECTION OF PARTICIPATING COMPANIES

Recruitment of mission members will be conducted in an open and public manner utilizing Commercial Service Export Assistance Centers and industry teams. Promotion will include publication of the event in the Federal Register, direct mailing, e-mailing, broadcast fax, press releases to appropriate media, posting on the Commerce Department trade missions calendar - www.ita.doc.gov/doctm/tmcal.html - and other Internet websites, promotion at domestic exhibitions and conferences, and publicized announcements through a network of business organizations. Companies will be selected according to the criteria set out below. Approximately 12-15 companies will be selected.

Eligibility

Participating companies must be incorporated in the United States. A company is eligible to participate only if the products and/or services that it will promote on the mission (a) are manufactured or produced in the United States; or (b) if manufactured or produced outside the United States, are marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Company participation will be determined on the basis of:

In addition, the Department may consider whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's objectives. Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.

VI. APPLICATION INFORMATION

Applications for the trade mission to Morocco and Egypt will be made available beginning on January 7, 2003. The fee to participate in the mission will be $2000 and will not cover travel or lodging expenses. For additional information on the trade mission or to obtain an application, businesspersons should be referred to Molly Costa of the U.S. Commercial Service at 202-482-0692. Applications should be submitted to Molly Costa by March 12, 2003, in order to ensure sufficient time to obtain in-country appointments for applicants selected to participate in the mission. Applications received after that date will be considered only if space and scheduling constraints permit. The name, telephone number, and address for the contact person for the trade mission follows:

Address:

U.S. Commercial Service
USDOC
HCHB Building, Rm. 2012
Washington DC 20230
Phone: (202) 482-0692
Fax: (202) 482-0178
Email: Trade.Missions@mail.doc.gov