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
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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.


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