U.S. BUSINESS SEMINAR DRAWS KYRGYZ ENTREPRENEURS

UNCLAS SECTION 01 OF 03 BISHKEK 001178 SIPDIS SENSITIVE SIPDIS DEPT FOR SCA/CEN (GEHRENBECK) E.O. 12958: N/A TAGS: ECON EFIN EINV PREL KG SUBJECT: U.S. BUSINESS SEMINAR DRAWS KYRGYZ ENTREPRENEURS BISHKEK 00001178 001.2 OF 003 NOT FOR INTERNET DISTRIBUTION ¶1. (U) Summary: The Embassy-hosted "Doing Business with the USA" seminar attracted approximately 220 people for a discussion on developing business relations with U.S. firms and ways to compete for U.S. government contracts at Manas air base and in Afghanistan. More than 90% of the companies were new contacts for the Embassy's commercial section, and several were interested in providing services in Afghanistan. A Kabul-based USAID official outlined, on the margins of the seminar, the possibility of sending Afghan students to the American University of Central Asia (AUCA) in Bishkek for quality, low-cost English-language instruction. The seminar, arranged with Business Facilitation Incentive Fund and Department of Commerce financial support, achieved numerous objectives and established a solid foundation for expanding U.S.-Kyrgyz business ties. End summary. Attracting a Crowd -------------- ¶2. (U) On September 10, the Embassy hosted a day-long "Doing Business with the USA" seminar at the Bishkek Hyatt. Approximately 220 people, mostly Kyrgyz businesspeople, attended to obtain information on finding U.S. business partners or bidding on contracting opportunities with the U.S. government at Manas air base and in Afghanistan. U.S. Department of State, Department of Commerce, Department of Defense, and Agency for International Development personnel gave presentations and fielded questions from businesspeople and the media. Local American Chamber of Commerce members advised their Kyrgyz colleagues on issues ranging from international contracts to trade finance and shipping. Issues of Interest -------------- ¶3. (U) Deputy Minister of Economic Development and Trade Askar Oskombayev highlighted 50% growth in bilateral trade, but also said Kyrgyz lacked information on how to develop bilateral business ties. (Note: While both U.S. and Kyrgyz data reflect a substantial increase in 2006 trade over 2005 figures, Kyrgyz data show significantly higher levels of imports from the United States. End note.) Seminar participants queried speakers on the Special American Business Internship Training (SABIT) program, commodities that might benefit from Generalized System of Preferences (GSP) treatment, U.S. laws on investment, tax free investment zones and specific business propositions. Others, seeking to import goods from the United States, lamented being rebuffed by U.S. firms, which advised Kyrgyz firms to contact regional distributors, who in turn lacked interest in the Kyrgyz market. ¶4. (U) In response to presentations about contracting opportunities in Afghanistan, some companies expressed interest in servicing vehicles on site in Afghanistan, providing uniforms to Afghan authorities, and participating in construction projects. Several participants were already working in Afghanistan, and one, in particular, raised concerns about the lack of information about contract awards and alleged that third country nationals working at Bagram are being pressured to leave. ¶5. (U) Other participants discussed current or future procurement possibilities at Manas air base. One local vendor complained about having to pay local taxes on supplies, which other sellers located outside of Kyrgyzstan are able to bypass when selling directly to the base. Two representatives of current Kyrgyz contractors at Manas Air Base thanked the Ambassador for organizing the seminar, which they said was extremely useful even for them. One of the most BISHKEK 00001178 002.2 OF 003 popular events for participants occurred when Manas Air Base contracting personnel conducted a live, step-by-step tutorial on how to access information on procurement actions on-line, both for potential contracts at Manas as well as in Afghanistan. The Next Steps -------------- ¶6. (U) As more than 90% of companies attending the seminar were new contacts for the Embassy's commercial section, the Embassy plans to engage with these new contacts to stimulate trade opportunities. The Department of Commerce has indicated its willingness to help sponsor a Kyrgyz business delegation visit to the United States. As a result, we have identified a couple of construction-related trade shows where new U.S. materials and technologies might find markets in the booming local construction sector. We also plan to broadcast GSP information, as outlined at the July U.S.-Central Asia Trade and Investment Framework Agreement meeting, to the Kyrgyz business sector. A New Kyrgyz-Afghan Link? -------------- ¶7. (U) In addition to potential expanded business ventures for Kyrgyz firms in Afghanistan, the Kabul-based Deputy Director of USAID's Office of Acquisition and Assistance David Brown was enthusiastic about the possibility of sending USAID-sponsored Afghan students to the American University of Central Asia (AUCA) in Bishkek. The advantages of a quality, low-cost English-language institution conveniently located near Afghanistan, coupled with the expense of U.S. facilities and problems getting Afghan students to return to Afghanistan after their U.S. training, make AUCA a potentially good option for future USAID-funded students. The new revenue source would also help strengthen AUCA, and help build regional bonds between Kyrgyzstan and Afghanistan. The Ambassador encouraged the AUCA president to pursue this possibility with USAID. Brown also noted that there might be possibilities in training Afghan women in Kyrgyzstan. Comment -------------- ¶8. (SBU) The seminar achieved numerous objectives. First, the Embassy located a pool of interested businesspeople seeking trade opportunities with U.S. firms. Second, Manas air base contracting personnel found new vendors and showcased the base's financial contributions to the local economy. (The latest Manas air base numbers for contracts impacting the local economy were much higher than we have seen previously.) Third, the Afghan contracting presentation responded to President Bakiyev's request earlier this year for Kyrgyz firms to be given opportunities for business in Afghanistan. Fourth, the event generated positive press coverage of U.S.-Kyrgyz relations. Fifth, incorporating the local American Chamber of Commerce in the seminar provided a benefit to members and helped AmCham recruit several new members. ¶9. (U) The Embassy plans to continue its commercial diplomacy. While geography may hinder some types of trade, participants were quite interested in opportunities for broader commercial engagement with the United States. The Embassy would support additional visits by Washington officials to discuss substantive commercial issues with the Kyrgyz, and expresses its sincere appreciation for the participation of our State (Edward Smith),Commerce (Danica Starks and Erin Cole),Defense (Col Michael Luft, Col Donald Berchoff and Capt Thomas Clohessy) and USAID (David Brown) colleagues from Washington, Kabul and the region. BISHKEK 00001178 003.2 OF 003 YOVANOVITCH