U.S. BUSINESS SEMINAR DRAWS KYRGYZ ENTREPRENEURS

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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


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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
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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

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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.

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YOVANOVITCH