Kawasaki Kisen Kaisha, Ltd. (“K” Line) announced on August 28 its plans to launch a new feeder service between the East Coast of the United States and the Amazon region of Brazil, beginning in October 2008. “K” Line will operate the service jointly with its partner, Bringer Lines of Miami, Florida. The service will deploy two 500-TEU vessels on a biweekly bases.

The M/V Baghira is expected to arrive in Savannah, Georgia, around October 17. Ports of call for the service include Savannah, Port Everglades, Manaus, and Vila do Conde.

The Export-Import Bank of the United States (Ex-Im Bank) has approved a $400 million long-term loan guarantee to support U.S. exports of equipment and services to Reliance Industries Ltd. (RIL) of Mumbai, India, for its onshore and offshore oil and gas exploration and production activities in the Krishna Godavari Basin in the Bay of Bengal.

RIL plans to use the Ex-Im Bank-guaranteed financing for its purchases of U.S. engineering services, oil field equipment, offshore platform support, and drill and well services. A small portion of the financing will be used to support ongoing work at the Jamnagar refinery, which received Ex-Im Bank support in 2007 and is currently under construction. The primary U.S. exporters for this transaction, most based in the Houston area, include Bechtel Corporation, J. Ray McDermott Inc., and Canyon Offshore Inc., among others.

“India is a market with enormous prospects, and Ex-Im Bank is pleased to support this large energy-development transaction on behalf of American exporters. Our support helped to make their exports competitive in the face of significant international competition backed by foreign export-credit agencies,” said Ex-Im Bank Chairman and President James H. Lambright.

RIL is India’s largest private-sector company by revenue, net profit and total assets and currently operates the largest refinery in India and integrated petrochemical complexes in Maharashtra and Gujarat. RIL also has extensive retail operations in over 57 cities in 13 Indian states. The company recently expanded into offshore oil and gas exploration and production.

Ex-Im Bank has identified India as a key market for its export financing. In April 2008, Ex-Im Bank established the Indian Infrastructure Facility to support U.S. exports to Indian projects in sectors such as power and renewable-energy generation, oil and gas development, airport and seaport development, railway and urban transit, and health care. The facility now includes nine Indian financial institutions and has a financing capacity of $2.45 billion.

U.S. firms have an opportunity to participate in $94 million of sales to Mexico’s national electricity provider, Comision Federal de Electricidad (CFE), backed by the Export-Import Bank of the United States (Ex-Im Bank).

Ex-Im Bank has approved a new $80 million medium-term credit guarantee facility to provide financing support for up to 85% of the value of CFE’s purchases of equipment and services from as-yet-unselected U.S. suppliers. The purchases will help CFE maintain and upgrade some of its 150 electricity-generating plants. The state-owned electric utility provides 92% of Mexico’s electricity.

“This credit guarantee facility represents a tremendous opportunity for U.S. exporters, large and small, to secure orders from Comision Federal de Electricidad, expand their businesses, and sustain American jobs in the process,” said Ex-Im Bank Chairman and President James H. Lambright.

The guaranteed lender on the transaction is BNP-Paribas, New York, N.Y. CFE is the primary source of repayment.

Governor Dave Heineman of Nebraska yesterday announced details for the state’s first reverse trade mission, to be held in 2 weeks. More than 125 guests from eight nations will be visiting the state to take part.

Starting Wednesday, Sept. 10, and running through Saturday, Sept. 13, the event aims to encourage international companies to explore opportunities for investment in Nebraska. In addition to events being held in Lincoln and Omaha, guests will have an opportunity to visit Blair, Beatrice, Columbus, LaVista, Mead, and York.

“The reverse trade mission concept provides an opportunity to encourage our international trade partners to explore Nebraska’s endless possibilities up close and in person,” Gov. Heineman said. “International trade and investment are crucial to our state economy. This event provides opportunities for international customers to see firsthand what Nebraska has to offer.”

International businesses will be able to meet with potential customers and explore opportunities for partnership with sourcing companies or joint venture partners. It will also showcase emerging technologies available for license in Nebraska.

Delegations from Brazil, Canada, China, Costa Rica, Germany, Hong Kong, Japan, and South Korea are expected to participate.

The event is being sponsored by the Nebraska Department of Economic Development (DED), the Nebraska Diplomats, and the University of Nebraska, with additional support from a network of 22 businesses and organizations. It coincides with the annual Nebraska Diplomats’ Passport to Nebraska Weekend.

DED Director Richard Baier said, “The reverse trade mission builds on the activities associated with the Passport to Nebraska event with tours and meetings tailored specifically to the interests of our international visitors and business contacts. Combining these two events means we have an opportunity to bring together many of the Nebraska businesses interested in expanding their international connections and the foreign businesses interested in what Nebraska has to offer.”

Russian Agriculture Minister Alexey Gordeyev announced on Wednesday that Russia’s import quotas for pork and poultry will be cut by “hundreds of thousands of metric tons.”

Gordeyev indicated that Russia’s domestic pork and poultry industries were developing fast and it was time to reduce imports, which have been on the rise.   The agriculture minister added that Russia’s international agreements regulating the import of pork and poultry were signed more than 3 years ago and no longer reflect Russian interests.  The quotas were set to expire in 2009.

The Russian government reportedly is preparing to increase agriculture financing in 2009 through 2012, with more than $800 million (21 billion rubles) per year allocated from the federal budget, including more than $150 million (4 billion rubles) for subsidies to the meat and poultry industry.

Russia emerged as a leading market for U.S. pork and pork variety meat exports in 2008.   Through the first 6 months of this year, Russia imported 93,531 metric tons (206.2 million pounds) of U.S. pork valued at more than $197 million–an increase of 137% in volume and 144% in value over the first half of 2007.  U.S. pork muscle cut exports were up 143% to 75,730 metric tons (166.9 million pounds).

The effect of a Russian cut in import quotas remains to be seen.  Exports from the United States have already surpassed the country-specific tariff-rate quota (TRQ) of 49,800 metric tons (109.8 million pounds).  In-quota pork exports are subject to a 15% duty compared to 60% paid on out-of-quota exports. The quotas only apply to muscle cuts, not variety meats, which enter at 15% duty.

Overall, pork exports from the European Union (EU) have increased as well, more than offsetting the decline in exports from Brazil (down 12.5% through May). Exports from the EU are already nearing their TRQ of 249,000 metric tons (548.9 million pounds).  During the first half of the year, roughly 50% of Russia’s pork imports came from the EU, 25% from Brazil, 20% from the United States and 7% from Canada.

Only the EU and United States have country-specific TRQs.  Brazil and Canada share the “third-country” TRQ of 193,400 metric tons (426.4 million pounds).   Last year, Russia imported more than 40% of its pork outside quotas, with imports totaling 688,000 metric tons (1.5 billion pounds), exceeding quota allocations of 483,800 metric tons (1.1 billion pounds).

Anchorage, Alaska, will be the site of the American Association of Port Authorities’ (AAPA) 97^th Annual Convention and Exhibition, Sept. 21–25. The “North to Alaska”-themed convention, the first to be held in Anchorage’s brand-new downtown Dena’ina Civic & Convention Center, is expected to attract hundreds of seaport and maritime transportation leaders, industry experts and service providers to participate in a business agenda featuring many of the seaport industry’s key issues and top executives.

James Bradley, noted author of the New York Times’ #1 best-seller, Flags of Our Fathers, will serve as the convention’s keynote speaker. The title of Mr. Bradley’s inspirational presentation is “Doing the Impossible.”

“Convention participants,” said Kurt Nagle, AAPA’s president and CEO, “are in for a true ‘Alaska experience’ while taking part in a comprehensive business program with some of the seaport industry’s top leaders discussing challenges ranging from port expansion, project financing and freight mobility, to new environmental and security measures at cruise ports.”

The convention will conclude with a members-only annual meeting and the installation of new officers for the Association’s upcoming year, including appointment of Port of Los Angeles Executive Director Geraldine Knatz, Ph.D., as Chairman of the Board for 2008–2009.

Additional information about AAPA’s 97^th Annual Convention and Exhibition, including the business program agenda and media registration, is available at the Convention Web site.

On August 27, Eastman Logistics signed a letter of intent to merge with World Logistics Services, Inc., in early September 2008. Eastman is a non-asset based brokerage and logistics firm with over 10 million in annual revenues, headed by Reid and Jack Eastman, who will be remaining as managers of the company.

World Logistics Services, Inc. expects net revenue to increase by at least $5 million in 2008, and by at least $10 million in 2009, bringing total revenues to approximately $30 million in 2009.

The U.S. Department of Agriculture’s Economic Research Service (ERS) has created an online resource that offers side-by-side comparison of the new 2008 Farm Bill with previous legislation. The Web site gives an overview of the new law, including key provisions, details by Title, and links to related ERS publications and analyses of previous farm acts.

The 2008 Farm Bill (the Food, Conservation, and Energy Act of 2008), enacted into law in June 2008, will be in effect for the next 5 years.

Among areas particularly of interest to importers and exporters are Titles III, VIII, XI, XIII, and XV. Title III repeals the Intermediate Export Guarantee Program, Supplier Credit Guarantee Program, and the Export Enhancement Program. Title VIII tightens restrictions on the importation of illegally harvested wood products. Title XI adds and redefines commodities covered by country-of-origin labeling, while Title XIII enhances regulatory and enforcement tools to continue the oversight of transactions in foreign currency. It also expands the Commodity Futures Trading Commission’s authority over off-exchange retail foreign currency fraud, and provides the CFTC with increased oversight of contracts trading on Exempt Commercial Markets. Title XV introduces numerous tax provisions that affect customs fees, and extends the Caribbean Basin and Haitian textile and apparel trade preferences.

Investment companies Elia Inc. and its sister company Renaissance Trust Inc., of Dunmore, Pennsylvania, and Dessaport International Corporation Inc. of Halifax, Nova Scotia, have filed a formal complaint with the European Union about what the companies regard as Poland’s confiscatory treatment of their Gdansk-based joint stock company, EuroPort Inc. Poland.

The investors lodged the complaint with the European Commission’s Directorate General for Competition, alleging EuroPort has suffered losses totaling $183-million as a result of actions by the Port of Gdansk Authority (ZMPG) and Poland’s Ministry of the Treasury, owner of 85% of ZMPG’s shares.

EuroPort was building a modern deepwater grain terminal in the Port of Gdansk, at an estimated cost of $76-million, to facilitate the import and export of bulk agricultural products to and from Poland and its neighboring countries in Central Europe.

The project, backed by the European Bank for Reconstruction and Development and the Royal Bank of Canada, had been approved by the ZMPG and the Polish Government in 1995.

Construction began in late 1998 and was half-way completed by August 2002, when a new Board of Directors took over control of the state-controlled ZMPG. Shortly thereafter, the investors claim, ZMPG’s managing directors began obstructing EuroPort’s completion and ultimately succeeded in stalling the project. The American and Canadian companies also assert that ZMPG has repeatedly attempted to nullify their 25-year lease on the pier and adjacent land, signed in 1995. The investors allege those illegal acts constitute an attempt to evict them without compensation and eliminate EuroPort from the market.

The companies further allege that ZMPG’s board of directors was associated with “a powerful group of business persons and politicians who have had extraordinary control over what transpires in their territory even to the extent of influencing the local courts.”

Local courts in Gdansk have repeatedly refused to hear EuroPort’s pleas for redress, the companies say, and reconciliation hearings in the Court of Arbitration of the Polish Chamber of Commerce were futile as well. The grain terminal remains unfinished.

“The owners of EuroPort and their advisors believe their complaint to the European Commission,” says their formal brief to Brussels, “that in order to have a fair settlement of the situation, authorities outside Poland … must participate and fully examine the evidence.”

The City and County of Butte-Silver Bow, Montana, has submitted an application to the Foreign-Trade Zones Board to establish a general-purpose foreign-trade zone at a site in Butte, Montana, adjacent to the Butte-Silver Bow CBP port of entry. The application was submitted pursuant to the provisions of the FTZ Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR Part 400). It was formally filed on August 4, 2008. The applicant is authorized to make the proposal under Montana Code Sections 30-15-101 through 103.

The proposed zone would consist of one site covering 1,545 acres in Butte- Silver Bow, Montana and is within a Tax Increment Financing Industrial District located at 119041 German Gulch Road, Butte, Montana. The site is owned by the City and County of Butte-Silver Bow, the Port of Montana Authority, REC Advanced Silicon Materials LLC, and Pioneer Concrete & Fuel, Inc. The application indicates a need for zone services in Butte-Silver Bow, Montana. Several firms have indicated an interest in using zone procedures for warehousing/distribution activities for a variety of products. Specific manufacturing approvals are not being sought at this time. Requests would be made to the Board on a case-by-case basis.

The Commerce examiner will hold a public hearing on September 11, 2008, at 1:00 pm, in the Council Chambers, Room 312, Butte-Silver Bow Courthouse, 155 West Granite St., Butte, MT 59701. Public comment on the application is invited from interested parties.

For further information, contact: Kathleen Boyce at (202) 482-1346 or KathleenlBoyce@ita.doc.gov.

For more information, please see the notice in the Federal Register.