MALDIVES: EMERGING COMMERCIAL OPPORTUNITIES FOLLOWING BFIF

UNCLAS COLOMBO 000974 SIPDIS STATE FOR SCA/INS AND EEB/CBA FOR DWINSTEAD AND TGILMAN E.O. 12958: N/A TAGS: BEXP BTIO ENIV ABUD ECON MV SUBJECT: MALDIVES: EMERGING COMMERCIAL OPPORTUNITIES FOLLOWING BFIF TRADE SHOW REF: STATE 068953 ¶1. Summary: The embassy-organized American Pavilion at the Maldives International Trade Fair should help boost U.S. exports to the Maldives. Nine U.S. companies, or their local partners, rented 15 stalls within the U.S. Pavilion. Attendance and interest at the trade show was satisfactory, though lower than previous years due to the economic downturn, and exhibitor companies reported reasonable results despite the slower turnout. As a result of the trade show, there have been increased sales for a representative of U.S. specialty-textile producer group Sunbrella, promising leads for HP in different sectors, significant interest in a power generation and marine engine supplier, and new inquiries and ongoing sales by a U.S. food and beverage exporter. End Summary. Results: Increasing U.S. Commercial Presence -------------- ¶2. The American Pavilion continued to be the major attraction for the fourth consecutive year at the Maldives Hotel and Trade Expo, held August 4-6. The then-Charge Jim Moore was present at the inauguration of the trade show and opened the U.S. Pavilion along with the Maldivian Minister of Economic Affairs. Moore accompanied the Minister and officials of the Chamber of Commerce and introduced them to the U.S. pavilion exhibitors. Important outcomes -------------- ¶4. Following are some positive results to date for companies that participated in the American Pavilion: ¶A. A company using U.S. Sunbrella fabric to manufacture canopies and awnings received trade leads and secured a contract to supply one of the Maldives' premium resorts. ¶B. A U.S. food and beverage exporter expanded his product range and reported significant trade leads as a result the trade show. The company hopes to target USD2-3 million in sales to Maldives in 2009-2010. ¶C. HP reported many significant inquiries in several sectors, including telecom, hotels and trade sectors. ¶D. Cummins, Inc. reported a successful show with new leads in the resort sector. Emerging Prospects -------------- ¶5. Some companies reported a satisfactory trade show and will actively follow up leads in order to conclude contracts and sales: ¶A. Cessna attracted keen interest from government and private officials. This sector warrants close attention, as the Maldives has one of the largest sea plane fleets in the world. ¶B. IBM reported many inquiries on IT solutions and equipment from trading companies, the resort sector and some government institutions. ¶C. A U.S. sports equipment company with state-of-the-art gym equipment reported substantial interest by visitors on treadmills and other aerobic equipment, with potential to convert this interest to sales. ¶D. A Maldivian company promoting Caterpillar generation sets reported inquiries in power generation equipment. A few new resorts have planned to use Caterpillar equipment for power generation. ¶6. Expenditure Report -------------- Booth space and stall hire: USD 7,700 U.S. pavilion construction: USD 3,012 Decorations: USD 440 Promotional T-shirts: USD 272 Shipment and clearing charges: USD 1,397 Sampling/display items: USD 244 Courier charges: USD 348 Total: USD 13,413 BFIF expands U.S. Commercial links with Maldives -------------- --- ¶7. Comment: The American Pavilion fits into post's overall strategy of increasing ties with the Maldives. Led by USTR, on October 17 the USG signed a Trade and Investment Framework Agreement (TIFA) to encourage bilateral trade and investment. Post appreciates the allocated Business Facilitation Incentive Funds (BFIF),which has proved an important link in expanding U.S. commercial links with the Maldives. Many companies currently doing business in the Maldives were introduced by BFIF-supported initiatives. Although results were moderate in the initial years of the trade show, the current success of the U.S. pavilion is due to BFIF's sustained support for this event. Post strongly recommends continuation of funding for the American Pavilion at the Maldives Hotel and Trade Expo in 2010. BUTENIS