The Office of Service Industries, in cooperation with the International Franchise Association, will lead a business development mission to Brazil, Argentina, and Chile to promote the U.S. franchise industry and will focus on finding master franchisees and investors in these markets.
According to the Department of Commerce's Commercial Service officials in Argentina, Brazil, and Chile, franchising represents "Best Prospects" for U.S. firms seeking business opportunities in these countries. The visit is scheduled for June 1999 with a full program of activities in Sao Paulo, Brazil, June 9-12; Buenos Aires, Argentina, June 13-15; and Santiago, Chile, June 16-17.
The mission will include Commerce Department staff from the Office of Service Industries and U.S. corporate executives from the franchising industry interested in doing business in Brazil, Argentina, and Chile. The U.S. Commercial Service will organize the mission in each country with the support of host country ministries.
Many U.S. and other foreign firms have demonstrated interest in taking advantage of business opportunities in South America. The Commercial Service offices in Argentina, Brazil, and Chile believe that U.S. franchisers have a prime opportunity to expand their business venues into these markets.
With the largest economy in Latin America, Brazil is a country with immense export opportunities and an increased demand for imports is being fueled in part by generally lower tariffs and reduced non-tariff barriers. The Brazilian government is emphasizing increased economic opportunities for the private sector through privatization, deregulation, and the removal of impediments to competition. U.S. exporters are now able to expand and participate in new business opportunities which contribute to making Brazil the United States' third largest trading partner in the Western Hemisphere after Canada and Mexico.
Argentina, with real GDP growth of 8 percent in 1997, is the second largest economy in South America. In 1997, Argentine imports from the U.S. amounted to more than $5 billion, second only to Brazil. The boom in U.S. exports reflected pent-up Argentine demand, as well as the Argentine government's trade liberalization program, which cut the average tariff rate from 29 to 14 percent. U.S. goods and services are highly regarded in the Argentine market. The Argentine government has eliminated most restrictions on domestic and foreign trade of goods and services, and on financial markets, thus making Argentina one of the best markets in Latin America.
Chile is the region's most dynamic and promising market. Its strength and attractiveness lie not in its size (as a country of 14 million people, it is relatively small), but in the energy and professionalism of its entrepreneurs, the transparency of its regulations, and in the predictability of its decision-makers.
The mission leader and the business delegation will meet with corporate leaders and government officials to further the market access, market exposure, and market research efforts of U.S. franchise firms, while gaining valuable contacts for future business deals that will increase sales of U.S. products and services to each country. This trade mission will provide participants an opportunity to understand more clearly the professional services market in each country and establish important government and private industry contacts. Where appropriate, we will seek to discuss market access issues with host countries. In keeping with the goals of the mission, private sector participation will be concentrated among officers of franchise firms seeking business opportunities in Argentina, Brazil, and Chile.
The dates of this mission are tied to the ABF Franchising Show 99 held in Sao Paulo, Brazil, June 9-13, 1999, which is the country's most important trade event of its kind. The mission is scheduled to depart June 8, 1999 for Sao Paulo, Brazil and return June 17 from Santiago, Chile. Official events in connection with the mission are currently planned for Sao Paulo, Brazil, June 9-12; Buenos Aires, Argentina, June 13-15; and Santiago, Chile, June 16-17.
The schedule will be further developed based on the availability of company officials, the unique goals and interests of mission participants, and specific recommendations from the Commercial Service in each host country. In support of the mission goals, the Commercial Service offices in each country will arrange individual, tailor-made business appointments for mission participants. U.S. delegation members must have a legitimate purpose for participation and must meet the qualifications noted below as outlined by the Department of Commerce.
The program for the mission will include:
The cost for the Franchising Trade Mission is $4,600 per company, not including booth at the ABF Franchise Show 99 in San Paulo, Brazil.
Optional: To obtain a booth at the ABF Franchise Show 99 in Sao Paulo, Brazil, the cost is $2,020 per company. Individual booths are 30 square feet each in size. Cost includes booth, interpreters/booth assistance, booth assistance when participants are not at the booth, travel to and from hotel and exhibition, promotional campaign, and booth banners.
Total cost for both the Franchising Trade Mission and a booth at the ABF Franchise Show 99 is $6,620 per company.
June 9-12: Sao Paulo, Brazil June 13-15: Buenos Aires, Argentina June 16-17: Santiago, Chile
Recruitment will begin immediately and should be concluded by no later than April 15, 1999. Applications received after that date will be considered on a space available basis.
Companies that provide a product/service which is produced in the United States, or if not, marketed under the name of a U.S. firm and has at least 51 percent U.S. content of the finished product/ service, may participate in this mission.
Recruitment will be conducted in an open public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and via telephone calls.
Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.
Mr. Richard Boll -- Tel: (202) 482-1135 Fax: (202) 482-2669
Mr. Bruce Harsh -- Tel: (202) 482-4582 Fax: (202) 482-2669
Office of Service Industries U.S. Department of Commerce - International Trade Administration Room 1124, Washington, D.C. 20230