Speeches

Chargé d’Affaires Virginia M. Blaser's Remarks
on the Occasion of AMCHAM's Annual General Meeting

Wednesday, March 25, 2009
J.E.C. Assembly Hall, Plantation House, Place d'Armes
Port Louis

Ms. Mary Anne Philips, President, AMCHAM
Amcham Members
Distinguished Guests

I appreciate the opportunity to be with you all today, to speak with business leaders and to hear from you about your plans regarding the current economic crisis.

Today is also chance for me to tell you, in no uncertain terms, that the world’s largest and most vibrant economy will recover from these crises.
 
The economic problems have been much-publicized and much-feared, but the economy is not driven by news, it is driven by business.  And if there is one lesson learned about America through the years, it is this: We will move forward.

It is a great pleasure to be here today on the occasion of the 9th Annual General Meeting of the American Chamber of Commerce in Mauritius.  Since its inception in 1999, the American Chamber of Commerce in Mauritius has adapted to the many challenges faced by its membership.  These historic challenges include trade preference erosion and an overall drop-off in trade between the U.S. and Mauritius.  (For example in 2003, total exports to the US were 298 million USD against 187.6 million USD in 2007).
 
Today AMCHAM members – and indeed companies around the world – are facing some of the toughest economic challenges of our times.

As we rebuild after the storm, business opportunities will develop. Weak business ideas will be thrown down, and strong new businesses will emerge. 

It is this context that I would like to speak about two issues:

FIRST: What can AMCHAM as an organization do given the economic situation in the world today? What can companies represented here today do? And what can you, as an individual, do to manage in this difficult economic climate?

And SECOND: What is the United States doing to help you, Mauritius, and the region?
 
Despite Mauritius’ strong economy, everyone here is aware that Mauritius has not been immune to the crisis, as witnessed by the difficulties local textile companies faced in exporting goods last quarter and the downturn of tourism revenues.
  
What can companies do, and what can you, as an individual, do to manage in this difficult economic climate?
 
The first action we all must take is one of courage.  We must have the courage to stimulate, and follow, our own creativity … and to encourage your colleagues and employees to be creative as well.  New business results from new initiatives; we need to reach out further in this economy to get results.  The economic and cultural success that Mauritius has built in 41 years of independence is only the beginning: Multi-lingual advantages, a unique geographical location, an uncomplicated tax structure and a free port, a literate and educated populace – these are all things that the country can build upon.  Sugar cane and textiles, while still valid businesses, should not be looked to as the “main sources” of industry; rather fresh ideas and global reach should be the new calling card of business in Mauritius.

Danish Nobel Prize Winner for Quantum Physics, Niels Henrick Bohr, said that every great and deep difficulty bears in itself its own solution.  It forces us to change our thinking in order to find it.  I don’t claim to have all of these business ideas – they are yours. It is your courage and creativity -- in finding new ways to do business, new avenues to explore, and new partners with whom to work – that will make the difference.  The ideas and steady strength of each and every AMCHAM member, and every one of your employees, will serve to improve business.  And, together, the work of individuals and companies around the world will get things back on track.

British author Phillys Forbes Dennis put it more simply: There are two ways of meeting difficulties. You alter the difficulties or you alter yourself to meet them.  We all know the difficulties; it is our task to mold them, and to form ourselves, to work through them, and to succeed.

In today’s globalized world Mauritius will need to continue forward-thinking programs such as “Maurice Ile Durable” and the recent stimulus package.   New markets, new products and new thinking can be the result of this crisis in Mauritius.  The Mauritian Government should seek out US companies looking for new bases of operation.  I too often hear remarks that “it can’t be done” and that U.S. companies won’t come as far as Mauritius for a regional hub.  You sitting here today belie that argument.  As do the 800 plus US companies in South Africa, a mere few hours away.  If South Africa can attract such a significant US business community – in all sectors and industries – Mauritius certainly can hit higher marks, too. AMCHAM can help.

AMCHAM can also play an increasingly important role in supporting and growing these opportunities – most especially the trade relationship between the U.S. and Mauritius.

This brings me back to my second point: What did the United States do to help Mauritius and the region prepare for the current economic crisis? And what do we have planned going ahead?

Let me start with what we’ve done the past year or so.  And a good place to begin is with the Trade and Investment Framework Agreement -- or TIFA -- which was signed between Mauritius and the United States in 2006.  As many of you know, this agreement is designed to promote business and investment relations between our two countries.  The U.S. hosted the second TIFA Council meeting in April 2008, and dialogue between our two nations’ trade experts has been continuous.
 
Another recent important event marking the trade relations between our two countries was the approval, in October 2008, by the U.S. Congress of the eligibility of Mauritius for the Africa Growth and Opportunities Act, or AGOA, Third Country Fabric provision until 2012.

The third country fabric provision can help to mitigate the global economic crisis’ adverse impact on textiles by providing an opportunity to local textile companies to increase their exports to the U.S. market.  When Mauritius enjoyed the Third Country Fabric provision in the past, AMCHAM played a major role in building ties between Mauritian textile exporters and the U.S. market.  Many of you will recall AMCHAM member involvement in the 2004 Trade Mission to South Africa and your pro-active networking for textile companies interested in the US market. In short, AMCHAM members developed a clear vision for AMCHAM action and you saw it through to success. 

I challenge AMCHAM to again help reinvigorate this element of the US-Mauritian trade relationship.
 
Through our regional USAID Trade Hub, the United States provided technical assistance and support to several firms in Mauritius to help them enter the U.S. market, especially in the processed food and apparel sectors.

Through the participation of Mauritian companies in the Fancy Food shows in New York, some local companies are or will soon be exporting to the U.S. such products as jam, agricultural rum, spices, tuna, special salt, tea, and honey.

In the textile sector, we assisted Mauritian companies to participate in the Magic Show and the Apparel Business-to-Business meetings in both the U.S. and South Africa, which resulted in a variety of significant sale contracts with U.S. buyers.

In the past ten months, the United States provided a consultant to prepare a National AGOA Export Strategy for Mauritius.  The report, already delivered to Enterprise Mauritius, is being used by the Mauritian Government to help companies export to the U.S., and recommendations from the document are being incorporated into the upcoming Mauritian planning meetings. This same report has been offered to AMCHAM, and I encourage you to obtain a copy through your AMCHAM president. 

A few months ago, our regional Agricultural expert visited Mauritius to review the agriculture/agribusiness component of our TIFA Agreement and assess the opportunities to expand the U.S. Department of Agriculture (USDA) programs in support of that agreement.  

During the review, we identified several areas where US Department of Agriculture programs might be of interest to Mauritius, including agricultural biotechnology, food safety, sanitary and phytosanitary technical issues, and skills development. 

As a result, Mauritius is now included in 2009 Cochran Fellowship Program for short-term agricultural training programs in the United States.

These are just some of the examples of the US Government trade and investment initiatives from the past year.

But, as many of you may have noted, it has been quite a year…and with the U.S. economy suffering, many people worry that such programs will be cut. Or perhaps that treaties and agreements will be slowed down while the United States focuses internally. 

I am here to assure you that this is absolutely not the case. 

The United States is engaged with its international partners and we plan to stay engaged. 
As a snapshot of this active engagement, let me outline for your some of our programs for the next month alone….

In April, we are expecting a very senior U.S. delegation to come to Mauritius for the third TIFA Council Meetings scheduled for April 21st and 22nd.  

We are working closely with the Mauritian Government to keep this important trade agreement moving forward.  We are aided by the TIFA Council, which was set up to monitor the progress in implementing the agreement.

We continue to aggressively pursue discussions on a Bilateral Investment Treaty between the U.S. and Mauritius.  This treaty, when signed, will help protect private investment, develop market-oriented policies in partner countries, and promote exports.  This proposed treaty will be one of the main topics for discussion in the April TIFA Council Meeting.

On April 6, the Embassy is organizing a Market Development Workshop with the participation of representatives from the U.S. Grain Council, the U.S. Potato Board, and the U.S. Department of Agriculture. Our Agricultural Attaché will present US Government activities and regional technical assistance programs in which Mauritius can participate. 

At the same time, representatives of the U.S. trade associations will look into the needs of Mauritius for potatoes, corn and other grains. 

Mauritians will also be invited to participate in a biotech workshop in Johannesburg.

Again in April, our regional AGOA experts will travel to Mauritius to make presentations during the AGOA Week organized by the Ministry of Industry and Enterprise Mauritius to sensitize the local business community to export opportunities under AGOA.  

In support of the “Maurice Ile Durable” program to make Mauritius a greener and more efficient island, we will be signing a $325,000 grant agreement with the Central Electricity Board (CEB) to finance a feasibility study for its Transmission and Transformer Network Monitoring System in Mauritius. 

When this study is completed and the Monitoring System is modernized, Mauritius should benefit from cheaper and more efficient energy.

We think this list is pretty impressive for a four week period! 

If any of these particular programs interest you, I urge you to contact the Embassy and let us know.  If none of these apply to your business, then we are open to other ideas for ways in which we can work together to facilitate trade.  Our Economic Officer, Quentin Barber, and his team will be pleased to respond to any and all expressions of interest. 

I am optimistic that the outward-looking actions of both the past year and the planned programs in the months to come will result in a steady increase in sustainable business ventures between Mauritian and U.S. companies. 

As U.S.-Mauritius trade relations intensify, I anticipate AMCHAM can play a greater role in encouraging trade between the United States and Mauritius.  The U.S. Embassy stands ready to assist in AMCHAM’s development, and the economic development of Mauritius.  

Leave here today with no doubt that we are steady friends and steady partners.

Together we can expand trade linkages and improve our individual and regional economies.

I wish the President and the next Board of Directors another successful year at the head of AMCHAM. And I thank you for allowing me to participate in this event today.