The Department of Commerce is sponsoring a trade mission to the Middle East. The mission will be led by the Deputy Assistant Secretary for Africa and the Near East and will visit Egypt, Israel, West Bank/Gaza, and Jordan from June 5 to June 12, 1998. The mission will target business opportunities in high technology sectors, and will serve to match participating U.S. company representatives with potential business partners, licensees, and agents/distributors in these markets, and will encourage multilateral or regional projects. It will also support the economic track of the Middle East Peace Process. The trade mission will be open to both new-to-market and old-to-market companies as well as new-to-export firms.
The mission's goal is to introduce U.S. company representatives to key host government decision-making officials as well as to potential business partners. The focus will be on high technology. The mission will also support the economic track of the Middle East Peace Process by encouraging U.S. companies to visit Egypt, Israel, West Bank/Gaza, and Jordan, and to establish a commercial link between their firms and businesses in the region. Existing export control regulations will pertain to all products being promoted.
At each stop, American Embassy officials will offer a comprehensive country discussion on the economic and commercial climate and the status of regional economic and commercial cooperation. Briefings materials will be provided to the mission prior to their departure. U.S. Embassy officials, including Foreign Commercial Service Officers, will provide an in-depth market briefing in each stop highlighting developments and opportunities in the specific sectors represented by mission participants. The Commercial Officers will also schedule one-on-one appointments for mission members with key business and government officials, and provide background information on the local firm and government official. Private sector appointments will be held in a hotel setting and scheduled for each participant on an hourly basis, while meetings with host government officials will take place in the respective ministry.
As a result of its successful economic reform program, Egypt has received positive investment ratings from Standard & Poors and Moody's. While some structural reforms have yet to be implemented in order to create a more business-friendly environment, the international business community is looking closely at Egypt and the opportunities it offers in high technology sector. Egypt has also embarked upon a major privatization program, including industrial plants and hotels. Egypt represents a sizeable domestic market but is also attractive as a site from which to export to the region and to Europe.
Both the Egyptian Government and business community are looking to attract U.S. high tech firms to Egypt, and there have been discussions within the government of establishing a "high tech valley" (like Silicon Valley in California). The U.S. Government and private sector have been approached by the Egyptians to assist them in this effort.
The market in Egypt for high technology equipment, services, and know how has increased significantly in the past several years. The high reputation of the U.S. technology industry enhances sales prospects from the United States. The American Embassy in Cairo reports that Egypt's computer market has experienced particular growth. There is a small industry assembly assembling imported computer components in Egypt. And Egypt is the fastest growing Internet user in the Arab world. With growing awareness of the value of accessing the Internet, demand for computers and peripherals, and high technology equipment in general, will continue to increase.
As the most advanced economy in the region, Israel's GDP is estimated to be $110 billion in 1998; its per capita GDP is approximately $17,000, rivaling that of the United Kingdom. For much of the 1990s, the annual growth rate has approached six percent per year. Israel is the only country in the world that has a Free Trade Agreement with the European Union and the United States, thereby facilitating trade in goods and services.
The country offers significant opportunities for U.S. firms in the high technology sector. Recently, for example, Intel invested $1.6 billion in a new microchip manufacturing plant. Most of the major high tech American firms, including IBM and Microsoft, have a presence in Israel, and Israeli firms are seeking partnerships with U.S. companies in this area. Israeli scientists, of whom thirty percent are in the life sciences, have created a burgeoning bio-tech industry.
The influx of venture capital into Israel in the 1990s has been remarkable. Currently there are fifty funds with $2 billion in assets, up from zero funds ten years ago. Its Russian immigrant population, 40 percent of whom have advanced degrees, offer additional opportunities of trade with the former Soviet Union.
As a developing economy, and despite political difficulties, the West Bank/Gaza is an open market for U.S. industry, particularly with the Duty Free Proclamation. The Presidential Proclamation permits goods to enter the U.S. and Palestinian market duty free. The Palestinian business community has long sought to encourage greater U.S. private sector participation in their market and is eager to serve as agents/distributors as well as joint venture partners with American firms. When Secretary Daley met with Chairman Arafat in January 1998, he expressed his commitment to facilitate business development in the West Bank/Gaza and to increase bilateral commercial ties. In fact, he told Chairman Arafat and members of the Palestinian American Chamber of Commerce that he would ask ITA to bring business people to the West Bank/Gaza at their earliest convenience. Palestinians are well-disposed to buying "American" goods and services.
Jordan has been very successful in its economic reform program and has been praised by the International Monetary Fund officials. As a result, Jordan has become an attractive market for American firms in the high technology sector. Jordan's skilled labor force is particularly attractive for American firms. In 1997, U.S. exports to Jordan increased to more than $402 million, up fifteen percent from the previous year.
The United States has just declared the first Qualifying Industrial Zone in Irbid, Jordan. This will allow goods to be treated duty free on a reciprocal basis. The signing ceremony took place at the White House in early March. Jordan also participates with the United States and Israel in the Trilateral Industrial Development program, which promotes research and development, manufacturing, and marketing of new products and technologies.
Official mission events will be conducted during the week of June 7 in Egypt, Israel, West Bank/Gaza, and Jordan. The Deputy Assistant Secretary's mission will leave the United States on June 5. The mission will meet government and business leaders, and will hold other mission events in each of these commercial centers. On June 7 and June 8, the mission will be in Egypt. It will be in Israel, and West Bank/Gaza on June 9 and 10, and then in Jordan on June 11. The precise schedule will depend on the availability of Middle East government and company officials and specific goals and interests of mission participants. Recruitment for the mission will begin immediately and should be concluded no later than April 30.
Recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general public and trade media, faxes, notices by industry trade associations and other multiplier groups. 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 percent U.S. content of the finished product/service. Any partisan political activities (including political contributions) or an applicant are entirely irrelevant to the selection process.
Mr. Tom Parker, Director
Office of the Near East
U.S. Department of
Commerce
Room 2029b
Washington, D.C. 20230
Tel: 202-482-4867
Facsimile:
202-482-0878