UNDERSECRETARIAL BUSINESS DEVELOPMENT MISSION
FOR INFORMATION AND COMMUNICATIONS TECHNOLOGY
TO NORTHERN IRELAND AND THE REPUBLIC OF IRELAND
APRIL 6 - 11, 2003
MISSION STATEMENT


I. DESCRIPTION OF THE MISSION

Department of Commerce technology-sector leaders will convene a senior-level business development mission to Belfast, Northern Ireland (N.I.) and Dublin, Republic of Ireland (R.O.I.).

The focus of the mission will be to help U.S. companies explore business opportunities in both Northern Ireland and the Republic of Ireland. The delegation will include approximately 12 U.S.-based senior executives of small, medium and large U.S. firms representing the information and communications technology (ICT) sector. Technology products and services have become an increasingly important part of U.S. trade with Northern Ireland and the Republic of Ireland, with both regions possessing highly skilled technology workers and end users.

II. COMMERCIAL SETTING FOR THE MISSION

The Republic of Ireland

The Republic of Ireland has been the fastest-growing European Union economy in recent years. However, like many other economies, began to experience a slowdown in economic growth in mid-2001. The slowing of the rate of Irish economic growth through the first quarter of 2002 appeared to have bottomed out by the fourth quarter of CY2002. Rather than the double-digit growth rates during the second half of the 1990s, economic growth for 2002 was expected to be in the range of 3-4 percent, with a similar growth rate in 2003. Most economists believe that a maturing Irish economy is well poised to achieve stable annual growth rates over the medium-term of 4-5 percent. This is predicated on the Irish investing significantly in infrastructure, especially in transport, energy, and telecommunications.

A member of the European Union (EU) since 1973, the Irish economic model reflects an emphasis on open markets, less government regulation, flexible labor markets, and fiscal incentives to business (including low corporate taxes). As a small-island economy, the Republic of Ireland is dependent on foreign trade and greater access to overseas markets. The Republic's foreign trade in 2001 totaled $131 billion, or the equivalent of 130 percent of Gross Domestic Product (GDP).

The Republic of Ireland's economic growth has been fueled, in part, by a rapidly expanding labor force. Between 1994 and 2001, employment increased by 40 percent. While the economic slowdown has taken some heat out of the inelastic labor market, there is only a very limited supply of skilled labor. Unemployment in the second quarter of 2002 stood at 4.6 percent and, though up from 3.8 percent recorded in the same period of 2001, is low by historical and comparative EU standards. Predictions are that unemployment will rise to 5.0 percent in 2003. Employment growth increased by 2.0 percent in the second quarter of 2001. A gradual increase in the unemployment rate was predicted for last year from 4.5 to 4.75 percent - still low by historical standards. Consumer price inflation (CPI) was running at 4.6 percent in October 2002, following the annual CPI index in 2001 of 4.9 percent. Forecasts show consumer price inflation to average 4.5 percent in 2002, falling slightly to 4.25 in 2003.

The United States is the largest source of foreign investment in the Republic of Ireland, with close to 600 U.S. firms there--most of them in high-tech sectors--employing more than 75,000 people. The ICT sector has been a key to the Republic's remarkable economic growth over the past seven years and the government is well aware that it will continue to play an important role in maintaining strong economic growth in the future. There is also general recognition and appreciation that U.S. foreign investment has helped fuel the ICT sector during this period of rapid economic growth. The statistics underscore the strong and growing U.S.-Republic economic links. The United States is now the Republic's second largest trading partner after the United Kingdom. Total, two-way merchandise trade in 2001 was $21 billion, an increase of almost 150 percent since 1996. Through November of 2002, two-way trade has expanded to $27 billion, mainly to surging exports from the Republic of Ireland.

Northern Ireland

Throughout the 1990s, Northern Ireland has enjoyed the fastest economic growth of any region of the United Kingdom (England, Scotland, Wales and Northern Ireland). Nominal growth since 1989 stands at 82.3 percent, compared with 71 percent for the U.K. From 1990 to 2000, manufacturing output increased by 47.7 percent, compared to an increase of only 8.7 percent for the U.K. as a whole, with output increasing by 1.7 percent in the year to June 2001. Northern Ireland was predicted to record growth of 3.4 percent last year, ahead of the U.K. average of 2.6 percent, according to a leading economic consultancy, Business Strategies, which also predicts that Northern Ireland will be the U.K.'s number one growth spot in 2003.

Currently running at its lowest level since records began, the jobless rate has fallen steadily from a peak of 17.2 percent in 1986 to 6 percent at last count (in October 2001), compared with the EU 15 average of 7.6 percent at that time. Between 1990 and 2000, seasonally adjusted employment in Northern Ireland increased by almost 17 percent. Total employment in Northern Ireland is expected to grow faster between 2001 and 2010 than the U.K. as a whole in each year of the forecast period. This growth rate is expected to result in an extra 40,000 jobs by the end of the decade. Housing prices in Northern Ireland have increased by 82 percent since 1995, reflecting increased social and economic confidence throughout the region.

In the twelve months preceding March 2001, new overseas investment in Northern Ireland reached an all-time high with the announcement of 16 new inward investment projects offering the prospect of 3,085 new jobs. A total of 7,596 new jobs were added in that same period, another record achievement. Of these jobs, over 90 percent are in electronics, telecommunications, and international trade services, including software. The strong growth of these and related sectors point to an ongoing transition towards a knowledge-based economy. Recent substantial investments from North American and Japanese companies such as Nortel Networks and Fujitsu are putting Northern Ireland at the heart of the international e-business revolution. Today, there are close to 100 American companies invested in Northern Ireland, an increase of 150 percent since 1994. These investors have created more than 4,000 new jobs in Northern Ireland.

On average, more than $35 million worth of N.I. manufactured goods are sold outside Northern Ireland every day of the year. Exports now account for 39 percent of total sales by Northern Ireland companies, up from 28 percent in 1992, and Northern Ireland's total exports approached $6 billion in the year 2000. More than 77,000 manufacturing jobs--close to 75 percent of local manufacturing employment--are estimated to rely on sales outside Northern Ireland. Leading export sectors include transport equipment and electrical and optical equipment. The latest export survey show export sales to markets outside Europe have grown by 20 percent in recent years and account for more than $3 billion in annual sales. As a result these markets now account for almost half of Northern Ireland's total exports.

III. GOALS FOR THE MISSION

The trade mission will further both U.S. commercial policy objectives and advance specific business interests in the ICT sector. It is focused on:

IV. SCENARIO FOR THE MISSION

The Business Development Mission will provide participants with exposure to high-level business and government contacts and an understanding of market and technology trends and the commercial environment of Northern Ireland and the Republic of Ireland.

The Mission will be led by key officials from the Department of Commerce's Technology Administration and the National Telecommunications and Information Administration, two of the Department's key technology policy bureaus. Charged with advancing the interests of technology and telecommunications sectors, these bureaus are well poised to facilitate policy discussions with their Irish counterparts.

Further, U.S. Embassy and U.S. Consulate General officials will provide detailed briefings on the economic, commercial and political climates, and participants will receive individual counseling on their specific interests from U.S. Commercial Service industry specialists.

Meetings will be arranged as appropriate with senior government officials and potential business partners. Representational events also will be organized to provide mission participants with opportunities to meet Northern Ireland's and the Republic of Ireland's business and government representatives, as well as U.S. business people living and working in Northern Ireland and the Republic of Ireland.

The tentative trip itinerary will be as follows:

April 6 Arrive Belfast, Northern Ireland; evening events and briefing
April 7 One-on-One Business Meetings in Belfast; group policy meetings
April 8 Business and Policy Meetings in Northern Ireland;
Travel to Dublin, Republic of Ireland
April 9 One-on-One Business Meetings, group policy meetings, mission events, and briefings in Dublin
April 10 One-on-One Business Meetings, group policy meetings, mission events, and briefings in Dublin
April 11 Departure for the United States

The precise schedule will depend in part on the availability of local government and business officials and the specific goals of the mission participants.

V. CRITERIA FOR PARTICIPATION OF COMPANIES

Recruitment

The recruitment of mission members will be conducted in an open and public manner utilizing Commercial Service Export Assistance Centers, International Trade Administration industry teams, and Technology Administration and National Telecommunications and Information Administration teams. Promotion will include publication of the event in the Federal Register, direct mailing, e-mailing, broadcast fax, press releases to appropriate media, posting on the Commerce Department trade missions calendar - www.ita.doc.gov/doctm/tmcal.html - and other Internet websites, promotion at domestic exhibitions and conferences, and publicized announcements through a network of business organizations. Companies will be selected according to the criteria set out below. Approximately 10-15 companies will be selected.

Eligibility

Participating companies must be incorporated in the United States. A company is eligible to participate only if the products and/or services that it will promote (a) are manufactured or produced in the United States; or (b) if manufactured or produced outside the United States, are marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Company participation will be determined on the basis of:

In addition, the Department may consider whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's objectives. Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.

VI. TIME FRAME FOR APPLICATIONS

Applications for the trade mission to Northern Ireland and the Republic of Ireland will be made available on or about February 8, 2003. The fee to participate in the mission will be between $ 2,500.00 and $3,500.00 and will not cover travel or lodging expenses. For additional information on the trade mission or to obtain an application, businesspersons should be referred to Kathryn Sullivan of the Technology Administration's International Office at (202) 482-6805. Applications should be submitted to the Technology Administration International Office, U.S. Department of Commerce, 1401 Constitution Avenue, N.W., Room 4411, Washington, DC 20230, (or via facsimile at 202-501-6849) by March 7, 2003, in order to ensure sufficient time to obtain in-country appointments for applicants selected to participate in the mission. Applications received after that date will be considered only if space and scheduling constraints permit. The name, telephone number, and address for the contact person for the trade mission follows:

Kathryn Sullivan
International Office
Technology Administration
U.S. Department of Commerce
1401 Constitution Avenue, N.W
Room 4411
Washington, DC 20230
Phone: (202) 482-6805
Fax: (202) 501-6849