BFIF FY09 PROPOSALS

UNCLAS COLOMBO 000056 SIPDIS EB/CBA for DENNIS WINSTEAD E.O. 12958: N/A TAGS: BEXP ECON EFIC ETRD CE MV SUBJECT: BFIF FY09 PROPOSALS REF: A. STATE 128559 ¶B. 08 COLOMBO 746 ¶1. Post extends its appreciation for continued support of commercial activities in Sri Lanka and Maldives and proposes BFIF funding for a U.S. Trade Fair in Maldives for FY09. Points below are keyed to reftel request for information. (a) Justification -------------- ¶2. The U.S. Trade Fair ("American Pavilion") in the Maldives is a successful, well-established and proven contributor in developing and increasing U.S. commercial interests in Maldives. The trade fair is an important component of the U.S economic and commercial strategy to expand bilateral commercial links with this pro-western, 100% Islamic country. Since its commencement in 1999 as a catalog show, the U.S. trade exhibition has evolved to a full-fledged American Pavilion at the country's main trade show. The trade show is fully supported by the Maldivian Chamber of Commerce and Industry, the country's main business chamber. ¶3. As the event's largest attraction, the U.S. Pavilion occupies a premier location at the show. The diverse U.S. products and technology displayed in attractive stalls draw a large number of potential trade partners and visitors. The Ambassador's active participation at the 2007 and 2008 events demonstrates the importance of this event in post's overall economic strategy in Maldives. ¶4. Noteworthy results of previous trade shows include the establishment of a pilot wind power project utilizing U.S. technology; considerable increases in U.S. agriculture exports such as apples, oranges, packaged foods and eggs; the establishment of a local office for an interior products supplier, significant sales (more than USD 100,000) for a manufacturer of canopies and awnings using U.S. fabric, and numerous other sales opportunities and serious leads for U.S. companies and their representatives. ¶5. Prominent U.S. corporations including Cummins, 3M, Kraft, South West Wind Power, Bell, and Cessna were among the U.S. exhibitors in ¶2008. The show generated useful leads to participant companies, especially in the energy, food and beverage, paper products, and tourism sectors. Maldives presents opportunities for a range of products and technology, with sustainable energy, information technology, communications, electronics, construction products, services, and food and beverage offering the best prospects. High end products targeting niche markets are viable with certain segments of the population and in sectors -- such as tourism -- that are prepared to pay a premium for such products. The development of new resorts is also an opportunity for U.S. technology and service providers involved in construction and resort development. Although a comparatively small market, the Maldives is beneficial for companies willing to commit resources to securing commercial contracts. Potentially lucrative contracts can be obtained by companies ready to invest in the medium-long term, as achieved by some of the previous exhibitors at the U.S. pavilion. (b) Planning Milestones: -------------- ¶6. The dates of the show are to be determined, but will likely be between July and September 2009. The show will be held in the main conference center in Male'. Promotional strategy, logistics and related issues will be coordinated with exhibitors, the Maldives Chamber of Commerce and Industry, posts's General Service Office, post's Public Diplomacy Office and the exhibition organizer. Post requests confirmation of funding no later than March 2009 of BFIF funds to secure exhibition space for the American Pavilion. (c) Estimated Costs -------------- ¶7. Estimated costs for this program are $20,000.00. Post will also solicit funds from other USG agencies to fund components of the trade show related to those respective agencies. (d) Post points of contact -------------- ¶8. Kami Witmer, Economic Officer, and Adrian Mendis, Commercial Specialist. Tel: 94-11-2498500, Fax: 94-11-2437345, Email: WITMERKA@STATE.GOV, MENDISA@STATE.GOV. (e) Anticipated Outcomes and Follow up: -------------- ¶9. Participation in this trade show assists post to: sustain and advance growth in U.S. exports to Maldives; expand visibility of U.S. products and technology and establish the U.S. as a preferred supplier; form partnerships and sales contracts between U.S. companies and Maldivian firms; reinforce the 'Made in USA' brand in all sectors, with emphasis on food and beverage, technology and equipment for infrastructure projects; and identify large scale projects for U.S companies in areas such as construction, resorts, energy, food and beverage, defense and other relevant sectors. Successful project outcome criteria are based on new leads generated for exhibitors, number of visitors attending show, and number of contracts and sales concluded with Maldivian companies and government agencies. ¶11. Follow up will be again be done by contacting exhibitors, pursuing trade leads, and working with government agencies on large scale projects with potential for U.S. commercial contribution. We will also identify suppliers for specific requests received by American Pavilion visitors in coordination with USDA and FCS. Post's efforts are evident in U.S. Department of Commerce trade data. In 2007, U.S. exports to Maldives demonstrated a 9.5% increase above 2006. U.S. exports through end-November 2008 are up approximately 18.5% year-on-year. This BFIF activity is a proven generator of additional U.S. exports. BLAKE