J. Joseph Grandmaison leads a 38-person federal agency that helps promote export opportunities for American industry in developing and middle-income
countries. Described as the "most lean and efficient" agency in government by
the Coalition for Employment through Exports, TDA has been concentrating on transportation
and energy, which now make up nearly one half of its investments.
APTA Business Members have benefited from TDA-supported projects and will continue to
do so. Grandmaison encourages them to stay in touch with the latest developments through
the agency’s Internet web site, www.tda.gov.
By J. Joseph Grandmaison
Director
U.S. Trade and Development Agency
The U.S. Trade and Development Agency, an independent federal government agency, helps
American companies develop export opportunities associated with major infrastructure
projects in developing and middle-income countries.
In 1998, the agency invested $56 million in 419 new activities, including feasibility
studies, technical assistance, conferences, and orientation visits (reverse trade
missions). From Latin America to the Far East, we worked with U.S. businesses to export
the very best of American technology to 62 countries around the world.
Investing in feasibility studies is the primary tool the agency uses to work with
American businesses—including small companies—to promote U.S. goods and
services.
When a U.S. firm conducts a feasibility study, writing the recommendations and
specifications for a project, the company has a unique opportunity to position U.S.
suppliers for procurement opportunities when the project is implemented.
In short, we believe that helping in the beginning stages of project development
produces the desired results: U.S. exports and U.S. jobs.
TDA uses several of the tools available to the agency to help U.S. businesses export
overseas. An example of our comprehensive assistance is a recent railway success story in
Thailand.
In 1987, the Mass Transit Authority in Bangkok requested TDA assistance on a
feasibility study to evaluate the potential for a mass transit system in the major
commercial center of the country. TDA provided funding for DeLeuw Cather International
Inc. of Pasadena, Calif., to conduct the study, which was successfully completed in 1988.
U.S. technology for transit systems and railroads is known for being the most
innovative and reliable in the world. TDA knew that if the Thai officials could see
American systems in action, that would perhaps be the final push to ensure U.S.
involvement in the project.
In the summer of 1988, TDA followed through and sponsored an orientation visit for six
members of Bangkok’s Mass Transit Authority. The group toured metro systems across
the United States and met with American companies to discuss the pending rail
opportunities.
TDA’s combined efforts have paid off over the last two years for DeLeuw Cather. In
1997, the company won a $4.45 million contract for consulting services on the project, and
in 1998, it received a $12.8 million contract to serve as a project manager for the
initiative. In this capacity, the company will oversee the procurement of rolling stock
and related equipment for the mass transit system.
Given the current Asian financial situation, the project is currently on hold, but as
the situation improves, U.S. companies interested in serving as suppliers for this $500
million project should closely monitor its progress.
As a market-driven agency, TDA targets the sectors that represent the best
opportunities for U.S. companies. Any infrastructure or industrial project in an eligible
country may be considered for TDA assistance.
Over the years, our major investment sectors have remained fairly consistent. Energy/
power and transportation projects have generally accounted for between one-third and
one-half of all TDA’s investments. Water/environment and mining/natural resources
projects combined usually account for approximately one-fifth of total agency investments.
Manufacturing, services, and telecommunications round out TDA’s core sectors.
Among the most vivid characteristics of today’s society are massive international
trade flows and great mobility of the world’s citizens. Transportation links have
made this possible. Because concern for our environment is intimately connected to
development, mass public transit is growing increasingly more important.
In 1998, TDA provided more than $19 million for 90 transportation projects in every
region of the world. From helping to promote U.S. technology in aviation safety projects
to ensuring that American companies maintain a competitive edge in the wave of rail
privatizations sweeping the global marketplace, TDA stood alongside U.S. companies as they
built lasting, mutually beneficial partnerships with developing nations.
One highlight of these efforts was a conference focusing on rail infrastructure
opportunities from more than 40 different countries. The Railroad Express Conference
was TDA’s first event to focus on projects from every region of the world. More than
125 U.S. executives convened in Chicago to meet with 44 foreign project sponsors to learn
about opportunities representing over $5 billion in potential U.S. exports.
Project Resource Guides detailing the opportunities presented at this event are still
available on CD-ROM or in hard copy format in the TDA Library by calling (703) 875-4357.
These guides include contact information, implementation timelines, procurement needs, and
export potential for each project.
In addition to participating in TDA’s deal-making conferences, U.S. companies can
take advantage of TDA’s export assistance in several other ways.
Contracts for definitional missions and desk studies are reserved exclusively for small
businesses. These are the technical advisory services TDA uses to guide its investment
decision-making process.
Companies can also take part in the orientation visits that TDA sponsors around the
United States. From hosting site visits of manufacturing facilities to attending business
briefings with the delegates, these reverse trade missions are an effective way to
showcase U.S. technology in operation.
Feasibility study contracts are routinely competitively bid through the Commerce
Business Daily. In addition to serving as the prime contractor for these awards, American
businesses interested in supplying goods for the projects advertised should follow the
progress of these important opportunities.
To stay informed on the latest developments at TDA, we recommend reading the TDA
Pipeline, which details ongoing developments at the agency. This bi-weekly publication is
available on the agency’s website at www.tda.gov or
in hard copy by subscription. For a complimentary copy, please call the TDA Information
Resource Center at (703) 875-4357.
Investing in the international market can be a risky—though
profitable—business. TDA is here to help.
Grandmaison has headed TDA since August 1993. He was the Democratic nominee for
governor of New Hampshire in 1990 and has taught at Boston University’s School of
Public Communication.
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