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Gents,

Just want to give you a heads up on a potentially good business opportunity
of GPA (government procurement agreement).

GPA is a very hot topic currently in Taiwan. I went back to Taipei a couple
of weeks ago meeting some business leaders in the IT and construction
sectors as well as some chairmen of business councils. Almost all of them
talked to me about GPA. Almost all of them are eyeing on the US government
procurement market of US$300 billion (of which IT related US$80 billion)
annually.

Taiwan is an export oriented country with export accounting for >70% of its
GDP. This island has been known for its IT, construction...sectors,
exporting a lot of services and products to foreign countries. Taiwan won
accession to GPA of WTO a couple of years ago. Surprisingly, the business
concerns there have not been able to achieve good success in the GPA
business in the US market, very different from the fact that they have been
doing extremely well in the purchases from the US private sectors.

Why?

1. They don't know where the gov't procurement projects are and where to
get the info of federal/state gov't procurements in time.
2. Even sometimes they luckily get the info, they always face the problem
of windows being closed before they can go bidding.
3. Or, sometimes they have a little bit time to go for bidding, they
don't even know how to process the bidding efficiently and fruitfully.


Taiwan builds itself up successfully through export and therefore has really
better quality products and services compared with a lot of Asian countries
in order to compete in the global markets. It is willing and very prepared
to compete in quality and pricing to win bids but because of lack of
guidance and advice in the US market they have been doing a shitty job
winning no bids there, which might give us a good business opportunity.

Taiwan business councils and some big firms are keenly asking me for help,
one of which the chairman you met who hosted a dinner for you during your
recent visit there: Chairman Albert Wu of Council of Industrial and
Commercial Development of Taiwan, whose members' productions and sales
account for 50% of Taiwan's GDP. Albert is the keenest to ask cooperation
with us asap.

Advisory business opportunity like the above is huge in Taiwan for us. If
you find it doable and are interested, let's spend 0.5- 1 hour in private
discussing it when we meet in DC together with Jimmy. Honestly, I think
this kind of advisory business should be easier and more fruitful and
rewarding than Jonathan's steel pipe anti-dumping case. I actually feel I
can help sign off 2- 3 mandates with very big and internationally known
Taiwanese leading firms for us to start with. Our money may come from
regular retainers fees, or success fees, or revenue/profit sharing with our
clients in Taiwan (TBD).

Below I've prepared for you some background information.

Best,

Michael


Government procurement

Government procurement, also called public tendering or public procurement,
is the procurement <http://en.wikipedia.org/wiki/Procurement> of
goods<http://en.wikipedia.org/wiki/Good_(economics_and_accounting)>and
services <http://en.wikipedia.org/wiki/Service_(economics)> on behalf of a
public authority, such as a
government<http://en.wikipedia.org/wiki/Government>agency. With 10 to
15% of
GDP <http://en.wikipedia.org/wiki/GDP> in developed
countries<http://en.wikipedia.org/wiki/Developed_countries>,
and up to 20% in developing
countries<http://en.wikipedia.org/wiki/Developing_countries>,
government procurement accounts for a substantial part of the global
economy. To prevent fraud <http://en.wikipedia.org/wiki/Fraud>,
waste<http://en.wikipedia.org/wiki/Waste>,
corruption <http://en.wikipedia.org/wiki/Political_corruption> or local
protectionism <http://en.wikipedia.org/wiki/Protectionism>, the law of most
countries regulates government procurement more or less closely. It usually
requires the procuring authority to issue public
tenders<http://en.wikipedia.org/wiki/Call_for_bids>if the value of the
procurement exceeds a certain threshold. Government
procurement is also the subject of the Agreement on Government
Procurement<http://en.wikipedia.org/wiki/Agreement_on_Government_Procurement>,
a plurilateral <http://en.wikipedia.org/wiki/Plurilateral> international
treaty under the auspices of the WTO <http://en.wikipedia.org/wiki/WTO>.


Government procurement in the United States:
http://en.wikipedia.org/wiki/Government_procurement_in_the_United_States


Government Procurement Agreement (GPA):

The purpose of the GPA is to open as much government purchasing as possible
to international competition. It should ensure that foreign suppliers and
supplies receive the same treatment as nationals when bidding for purchasing
contracts with central, state, provincial and local government authorities,
and with government business enterprises and public utilities. The GPA is a
plurilateral WTO agreement. As such its particulars are binding only on the
signatories to the agreement. Though all GPA members are WTO members, not
all WTO members are subject to the GPA agreement.

Currently, there are more than 40 signatories to the GPA, and several
countries negotiating entry. Any a signatory of the GPA must provide a level
playing field for both domestic and foreign bidders throughout the tender
process, and must ensure effective application of GPA principles. For open
tenders, the process should be open to all interested suppliers (domestic or
foreign)…

The GPA is by far the most comprehensive set of plurilateral rules on
government procurement. It sets international standards for best practice
and transparent rules for public procurement projects, such as in transport
or construction infrastructures that generally require large public
investment. GPA beneficiaries ultimately are the taxpayers in all GPA member
economies, as GPA sets standards and rules that lead to more transparency
and competition in public procurement, and thus to more cost-efficiency and
better value for money. Most importantly, the application of GPA rules
provides companies bidding for contracts with increased business
opportunities and a fair level playing field and enables

public authorities to make informed choices.


THE US-TAIWAN BUSINESS COUNCIL CONGRATULATES TAIWAN ON ITS ACCESSION TO THE
WTO AGREEMENT ON GOVERNMENT PROCUREMENT (GPA)

December 9, 2008

Arlington, Virginia, U.S.A

The US-Taiwan Business Council today extends its congratulations to Taiwan
on its accession to the WTO plurilateral Agreement on Government Procurement
(GPA). This is an important milestone in Taiwan’s continued engagement with
the global economic community.

Coming at a time when many countries are instead retreating from their
commitment to the global trading system, Taiwan is showing leadership by
example. It will join 40 other trading nations in setting open, transparent,
and non-discriminatory rules for public procurement. The news is excellent
for American businesses, as accession offers new access to one of Asia’s
leading markets.

Council President Rupert Hammond-Chambers noted that “the timing of Taiwan’s
accession to the GPA couldn’t be more fortuitous, given the launch of
President Ma’s 12 iTaiwan initiative - covering myriad infrastructure
investments with well in excess of US$12 billion in spending. In addition,
U.S. companies will now have broader access to Taiwan’s regular government
procurement projects, from investments in critical infrastructure to
information technology (IT) opportunities.”

For Taiwan, the accession to the GPA offers its suppliers and supply chain
managers access to the U.S. government procurement market, totaling in
excess of US$300 billion annually. It also appears likely that the incoming
Obama Administration will launch its economic policies with a robust
stimulus package focused on infrastructure, presenting additional
opportunities for leading Taiwan businesses.

Mr. Hammond-Chambers added “as governments around the world invest in
technology to affect cost savings and greater efficiencies, Taiwan’s current
role as a leading global technology partner strongly positions it to take
advantage of new IT procurement opportunities. In addition, Taiwan’s ability
to bring to market solutions at a competitive price will bring efficiencies
to the other 40 GPA economies and will further expand Taiwan’s role as a
critical global economic partner.”

About the US-Taiwan Business Council:

The US-Taiwan Business Council (www.us-taiwan.org) is a membership-based
non-profit association, founded in 1976 to foster trade and business
relations between the United States and Taiwan. The Council provides its
members with business intelligence, offers access to an extensive network of
relationships, and serves as a vital and effective representative in dealing
with business, trade, and investment matters. Paul D. Wolfowitz is the
current Chairman of US-Taiwan Business Council. He was President of World
Bank Group, Deputy Secretary of U.S. Department of Defense and Assistant
Secretary for East Asian & Pacific Affairs of U.S. Department of State.


President Ma Ying-jeou signs WTO Government Procurement Agreement
(2009/06/08)

Taiwan’s export firms are soon to have access to the world's government
procurement market after President Ma Ying-jeou signed the World Trade
Organization’s Government Procurement Agreement on Monday. Once the
agreement comes into effect a month’s time, local suppliers will be able to
be part of the 31 trillion NT-dollar-a-year market.

Under the watchful eyes of various foreign envoys, President Ma was visibly
pleased after signing the Government Procurement Agreement, making Taiwan
the 41st signatory.

President Ma Ying-jeou: “I taught law at university for 18 years, said Ma.
For most of the time I taught international trade law. At that time, we were
not a signatory country nor a member country, it was pure theory. More than
10 years later we have actually become a signatory country of the Government
Procurement Agreement. It is a little bit like a dream come true.”

After the agreement comes into effect 30 days after the government notifies
the WTO, or around July 9, Taiwan's suppliers will be able to compete on a
fair footing with other nations` suppliers in the world's government
procurement market.

President Ma Ying-jeou: “Currently, Taiwan is pushing forward with its
12-point infrastructure plan, creating a multi-billion US Dollar business
opportunity, said Ma. On another front, according to statistics from our
Economics Ministry, participation in the GPA will give Taiwan's suppliers
access to a market many times larger that the one I just mentioned that is
in Taiwan.=9