Mission Statement

Safety and Security Trade Mission to Latin America

Columbia and Venezuela, with Optional Stop in Panama

June 12-17, 2005

Mission Description

The United States Department of Commerce, International Trade Administration, U.S. Commercial Service, Office of Global Trade Programs will lead a safety and security trade mission to Caracas, Venezuela and Bogotá, Colombia from June 12–17, 2005. Following the mission, for an extra fee, participating firms may further leverage their presence in the region by electing the optional visit to Panama City, Panama for additional business meetings under the U.S. Commercial Service’s Gold Key Service.

The mission will include representatives of U.S. safety and security equipment and supply firms interested in entering or expanding existing business in these Latin American markets. The mission is also open to representatives of U.S. safety and security equipment trade associations.

Commercial Setting

Throughout Latin America, end-users are becoming more sophisticated about using safety and security products, both on a personal and corporate level. As awareness of what new products are on the market increases, so does the demand for these products. This trade mission will focus on three top markets for this important industry: Venezuela, Colombia, and Panama.

Venezuela:

The Venezuelan market for this sector is estimated at $80 million, and is expected to increase by approximately 3 percent annually over the next three years. Venezuela has traditionally been almost a captive market for the United States, which has about 77 percent market share. Estimated total investment over the next three years (2004-2006) in key manufacturing and government sectors amounts to $2.5 billion, indicating there will continue to be strong investment in safety and security products as these sectors expand.

Petroleum companies and refineries; steel, aluminum and cement plants; food processing industries; large private companies, and shopping centers are all in the market for safety and security products. Industrial safety represents a particularly strong market sector, with around two million workers requiring personal protection devices. There is a good market for personal safety products, access control, CCTV, and such products as fire detection equipment, fire pumps and alarm systems.

Colombia:

The security business in Colombia attracts many multinational companies that see Colombia as a promising and highly profitable market. The market is estimated to be worth $92 million, with the U.S. holding 57 percent market share. Growth in this sector should be approximately 2.5 to 3.0 percent annually over the next three-year period.

The financial and banking sector is one of the largest consumers of security systems and products, covering practically the entire spectrum including physical security in the form of vaults, armored vehicles, and products for fortifying installations with steel. Also, fire protection systems are in demand as a complement to other alarmed systems.

Companies and private citizens realize that safety and security are high priority. Consequently, access control systems; intrusion detection systems and assault reporting devices (panic buttons); and information security technology (logins, passwords, software, and hardware security) have all experienced considerable growth in recent years. Biometric-based technologies and integrated systems are increasingly commonplace.

Panama–optional:

The safety and security sector is vital to Panama’s key sectors of financial services, and maritime and air transport. The total Panamanian market for safety and security products in 2003 was approximately $16 million, and is expected to grow another 15 percent to $19 million in 2004. The United States has kept a strong presence in this sector with more than 70 percent market share during recent years.

Safety and security is becoming a paramount concern for banking and commercial institutions. There is also an increasing need for security equipment in residential and public areas. Best sales prospects are fire and burglar alarms, smoke detectors, electronic surveillance equipment, intrusion protection, access control systems and safe/strong boxes. Car alarm systems are also in strong demand. In other words, everything from basic equipment to the most sophisticated systems is in demand.

Mission Goals

The objective of this trade mission is to introduce U.S. companies to distributors, public and private buying agents, and other potential business partners. The mission will focus on identifying opportunities for sales of safety and security equipment and related supplies. The mission will additionally seek to acquaint U.S. companies with the local market environments for safety and security equipment so as to facilitate their ability to effectively introduce their products to the region.

Mission Scenario

Participants will visit two of Latin America’s key metropolitan centers. The mission will have access to major countrywide markets, as well as central government officials and U.S. Embassy staff for regulatory and business climate briefings:

Bogotá—the capital of Colombia. With an estimated population of 6.5 million, Bogotá exercises strong influence throughout the country. A representative appointed here would cover all of Colombia.

Caracas— the capital of Venezuela. As the major administrative, political, and business center, Caracas is the key distribution center for U.S. products.

Optional: Panama City— the capital city.   Home to the Panama Canal, this region has major ports as well as growing industrial and residential areas.

During the trade mission participants will receive:
A) briefings on local safety and security markets in each city visited; B) introductions to potential agents/ distributors, facility administrators, and purchasing managers through group events; C) site visits; D) one-on-one meetings tailored to each firm’s interests; and E) meetings with local business representatives and local government officials as appropriate.

Timetable

Recruitment will begin in January 2005 and should be concluded no later than April 29, 2005. Applications received after that date will be considered only if space and scheduling constraints permit. The trade mission is tentatively scheduled to commence in Caracas, Venezuela on Sunday evening, June 12, and then go on to Bogotá, Colombia June 15, where the main mission program will conclude on June 17. Firms electing the optional stop to Panama will continue on to Panama City for appointments on June 20. The precise schedule will depend on the availability of local government and business officials, specific goals of mission participants, and air travel schedules.

Criteria for Participant Selection

Diversity of product mix among participating companies, and the relevance of these products to mission goals.

Product offerings that represent the variety of safety and security technologies in which the United States excels.

Business opportunities for the company in the three countries visited on this trade mission.

Timeliness of complete application and participation agreement, including payment of all applicable participation fees.

Provision of adequate information on company’s products/services and primary market objectives, in order to facilitate appropriate matching with potential business partners.

A company’s products or services must be either produced in the United States or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.

Any partisan political activities (including political contributions) of an applicant are irrelevant to the selection process.

Promotional Campaign

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and announcements at industry meetings, symposiums, conferences, and trade shows.

Costs

• $3,000 for a company's first representative;
• $500 per each additional representative;
• $1,000 for each representative of a trade association;
• Gold Key fees for the optional Panama stop are $300 per day.

A minimum of 6 and a maximum of 15 participating companies is desired.

Contact

Ms. Lisa C. Huot
U.S. Department of Commerce, GTP room 2118
Washington, DC 20230
Tel: 202-482-2796; Fax: 202-482-0975
E-Mail: Lisa_Huot@ita.doc.gov

Trade Mission Agenda*

*Note: These dates and activities are have been confirmed, but are subject to change if necessary. The final schedule and potential site visits will depend on the availability of local government and business officials, specific goals of mission participants, and air travel schedules.