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Country Commercial Guides for FY 2000: PortugalReport prepared by U.S. Embassy Lisbon, released July 1999 Note* |
V. LEADING SECTORS FOR US EXPORTS AND INVESTMENT
BEST PROSPECTS FOR NON AGRICULTURAL GOODS AND SERVICES
(USD million, unless otherwise noted)
01 - FRANCHISING
The Portuguese franchising market has grown steadily over the past decade. From the end of 1995 to 1998, the number of franchises has doubled. With a current estimated annual growth rate of 25%, franchising seems to have achieved its best moment in Portugal. At present, there are 300 franchisors operating in the market and the number of franchised units is estimated at 3,600. Even though Portugal is a small market, franchising as a business concept has not yet reached full maturity. U.S. firms have the advantage of internationally known names, but they also need to keep in mind that culture, lifestyle, taste, etc. are different and may need adjustment.
Best Prospects:
Child care
Amusement facilities
Company support services
Fast-food/restaurants: steak houses/seafood/salads
Automotive Products and Services
Maintenance, Cleaning and Sanitation
Educational Products and Services
Entertainment
Apparel/Fashion Franchises by country of origin:
Portugal 29%
Spain 21%
USA 13%
France 12%
Italy 8%NOTE: There is no legislation covering franchising. However, one of the first contacts in Portugal should be with the Portuguese Franchise Institute and the Portuguese Franchise Association. In general, market practice and agreement arrangements are very similar to those in the U.S.
02 - COMPUTER SOFTWARE (CSF)
Portuguese demand for computer software should present positive long-term prospects with the introduction of the latest generation of micro-computers, the development of telecommunications, the interconnection of heterogeneous systems and the creation of valued-added networks.
Portuguese demand for computer software, valued at USD 410 million in 1998, should continue to experience a high growth rate reaching a 17% annual average over the next three years. Seventy-four percent of Portuguese demand is met by imports. Last year U.S. import share was 35% but the estimated real market share for U.S. trade marks, some of which are bought from U.S. companies with branch offices in Portugal or imported from European subsidiaries, is about 75%. Five U.S. companies are among the 10 largest computer software companies in Portugal.
Most promising subsectors within the sector, along with estimated 1999 total market size of each subsector (USD million):
- Business Software (applications for financial institutions, especially integrated financial systems) - Operative Software (manufacturing applications, CAD/CAM, production control and software for main frames)
- Home Games and other Software
DATA TABLE 1997 1998 1999 A) Total Market Size 349 410 479 B) Total Local Production 191 214 220 C) Total Exports 101 103 106 D) Total Imports 259 299 365 E) Imports from the U.S. 91 105 128 Exchange rates (1998) 175
Import and export statistics for 1998 were provided by SPA - Software Publishers Association, BSA - Business Software Alliance, and the Portuguese Software Association (ASSOFT).
03 - TELECOMMUNICATIONS EQUIPMENT (TEL)
Portugal's telecommunications market offers huge opportunities for investors, service providers and equipment suppliers. Privatization and on-going liberalization have stimulated the creation of several new services, the start-up of new companies and increased demand for telecommunication equipment. Additionally, the liberalization of the TV sector, the start of a third mobile telephone operator in the middle of 1998, and the likely establishment of a second fixed telephone operator before 2001 will generate even more opportunities for American firms.
The strong performance of the telecommunications industry in Portugal has been a result of improved infrastructure accompanied by a significant decrease in equipment costs, and gradual liberalization of the sector. The primary driver of growth is cellular telephone service which has experienced an average growth rate of 96% since 1992 and has already gained a 25% share of the telecommunications services market.
Growth will continue with increased competition generated by the new Personal communications Network (DCS-1800) and the approval of a new fixed telephone operator expected to take place before 2000. Anticipating the fully liberalized market of 2000, all Portuguese telecommunications companies are making large investments to increase competitiveness. The equipment market is expected to grow at a remarkable annual rate of 16% from US $875 million in 1997. Imports constitute 75% of the total market. The US real share is much higher than the 4% reported because most US exports to Portugal are made through other European countries. There are many opportunities for American companies to expand their business in this area.
Most promising Subsectors within the sector and corresponding market size are:
- Cellular terminals
- Switching equipment
- Fixed terminals
DATA TABLE: 1997 1998 1999 A) Total Market Size: 875 1994 1150 B) Total Local Production: 276 280 282 C) Total Exports: 60 63 933 E) Imports from the U.S. 18 21 27 Exchange rates (1998)175
Import and export statistics for 1998 were provided by ICEP-Instituto do Comercio Externo de Portugal (the Portuguese Foreign Commerce Institute). All other statistics are unofficial estimates.
04 - COMPUTERS AND PERIPHERALS (CPT)
The Portuguese market for computers and peripherals (C&P) reached USD $685 million in 1997, USD $774 million in 1998 and is expected to increase to USD $988 million in 1999. Domestic demands must be met by imports which totaled USD $832 million in 1998 and are expected to continue growing at the high level of 13% per year.
The share of US imports in the Portuguese market for C&P's is about 9%. Competitors include the Netherlands with a market share of 26%, followed by France and Germany with shares of 13% each. It is important to note that much of the equipment shipped from Europe comes from subsidiaries of US companies. The real market share of US C&P's is more than 66 percent. Very large US multiuser systems dominate their market segment. Four US companies are among the ten largest C&P's suppliers and have about 59% of the market. Demand and imports are expected to continue growing over the next three years with the share of U.S. products experiencing a moderate increase.
Most Promising Subsectors within the sector and corresponding market size (1998 estimate) are:
HS Description Value of imports
(US$ millions)84714990 - Multiuser PC systems 97 84715090 - Large computers/mainframes 96 84716040 Printers 99 84716090 Input equipment/POS systems 88 847330 Parts and accessories for all types of computers 216
DATA TABLE:
1997 1998 1999 A) Total Market Size: 685 774 874 B) Total Local Production: 33 37 42 C) Total Exports: 84 95 108 D) Total Imports: 736 832 94 E) Imports from the U.S.: 68 73 87 Exchange rates (1998)175
Import and export statistics for 1998 were provided by ICEP-Instituto do Comercio Externo de Portugal (the Portuguese Foreign Commerce Institute). All other statistics are unofficial estimates.
05 - APPAREL (APP)
The textile industry is concentrated in the north of Portugal. It employs about 25% of labor force and is responsible for about 25% of total Portuguese exports overall. Apparel is the most important sector and has grown significantly over the last decade. There are many new clothing chains operating in this market. Portuguese imports are divided into three segments: fashion products (imported mainly from Italy and France); medium-priced good-quality apparel (in which U.S. products generally compete); and less expensive articles (from the Far East). Imports of apparel cover about 17% of market demand. EU countries are the most important suppliers, accounting for about 90% of Portugal's imports. The main European exporting countries are France (24%), Italy (22%), Spain (21%), and Germany (12%). Imports of sportswear from the U.S. are expected to increase at an annual rate of about 15-20% during the next two years.
Apart from being very popular, U.S. clothing has a good reputation among Portuguese buyers and end-users. U.S. manufactured apparel is considered to be durable and of high quality. Franchisers of apparel, mainly casual and sportswear should look to the Portuguese market and the potential it offers. U.S. designers may consider having their clothing manufactured in Portugal and exported from Portugal to other EU countries.
Most promising subsectors within the sector, along with estimated 1999 total market size of each Subsector (US$ million):
Casual wear (men, women and children) 1,620 Sportswear 1,520 Lingerie 1,350
DATA TABLE: 1997 1998 1999 A) Total Market Size 5,808 6,380 7,129 B) Total Local Production 6,812 7.485 8,234 C) Total Exports 2,008 2,210 2,320 D) Total Imports 1,004 1,105 1,215 E) Imports from the U.S. 5 6 7 Exchange rates 175(1998)
Import and export statistics for 1997 were provided by ANIVEC - National Association of Apparel Manufacturers. All other statistics are unofficial estimates.
06- LABORATORY AND SCIENTIFIC INSTRUMENTS (LAB)
Expansion of the market for Laboratory and Scientific Instruments is supported by a healthy growth in the pharmaceutical, food processing and biotechnology industries. Analytical instruments usage is rising rapidly in many areas, including that of pollution monitoring and quality control of industries. Private testing laboratories, including drug analysis, offer a growing market. On-line analytical instruments are penetrating the traditional process control market as their customers require faster and more accurate data to improve control of product processes for better quality and less waste. Accordingly, there will be an increasing market for U.S. analytical instruments. The U.S. shares about 14% of this market. An average annual growth rate of 5-10% is expected during the next two years.
Most promising subsectors within the sector, along with estimated 1999 total market size of each subsector (USD million):
- Analytical Instruments 93
- Measuring and Controlling Instruments 242
DATA TABLE 1997 1998 1999 A) Total Market Size 442 505 555 B) Total Local Production 29 32 35 C) Total Exports 5 7 8 D) Total Imports 418 480 528 E) Imports from the U.S. 60 64 74 Exchange rates (1998)175
Import and export statistics for 1998 were provided by ICEP - Investimento, Comercio e Turismo de Portugal (the Portuguese Foreign Commerce Institute). All other statistics are unofficial estimates.
07 - ELECTRICAL POWER SYSTEMS
Portugal imports close to 80% of its energy requirements, the remaining 20% comes from domestic production. Power generation in Portugal is either thermal or hydroelectric. Portugal does not have nuclear power. The Portuguese electricity supply industry was restructured in mid-1994 when the state-owned producer and distributor of electricity, Electricidade de Portugal (EDP) was broken into separate operating groups.
The EDP holding group, called Grupo EDP, coordinates the group's operations and strategy; its production company Companhia Portuguesa de Producao de Electricidade (CPPE); a grid company, Rede Electrica Nacional (REN); four regional distribution companies, (divided into north, south, central Portugal and Lisbon, and the Tagus river valley); and ten service companies. 48% of grupo EDP has been privatized, of which the Spanish company Iberdrola acquired 2.25% as the strategic partner.
An additional 2.25% of Grupo EDP is reserved for a future second strategic partner. Over a five-year period from 1994/1999, the EU is funding an Energy Program to develop alternative sources of energy in Portugal.
The funds allocated to this program total about USD 1.2 billion, composed of approximately USD 429 million from the EU, USD 36 million from the Portuguese Government, USD 419 million from public companies and USD 320 million from the private companies.
The installed capacity at power plants of EDP Group was 23,790 GWh at the end of 1997 of which hydroelectric accounted for 12,256 GWh (52%) and thermoelectric power plants accounted for 11,513 GWh, (48%) of the total).
In 1997 Portugal had a total power demand of 32,046 GWh, a 5.7% increase over 1996. Co-generation in Portugal offers major opportunities for growth. In 1997, co-generation units produced 3,605 GWh, of which 826 GWh went to the national grid. Portugal started operating in 1997 a USD 650 million, 500 mile, 28-inch natural gas pipeline that runs from Sines in the south to Valencia in the north. The private company Turbogas operates Portugal's first natural gas-fired power plant at Tapada do Outeiro (northern Portugal).
NOTE: This sector is listed only because it is a regional Best Prospect for the Showcase Europe program.
DATA TABLE 1997 1998 1999 A) Total Market Size: 216 228 250 B) Total Local Production: 39 41 43 C) Total Exports: 32 34 37 D) Total Imports: 209 221 243 E) Imports From the U.S. 8 8.5 9 Exchange rates (1998) 175
The above statistics are unofficial estimates.
08 - POLLUTION CONTROL EQUIPMENT (POL)
As a member of the EU, Portugal is required to incorporate into its environmental laws all the EU's environmental directives issued by the European Community, including standards for water and air quality, and urban solid waste treatment and recycling. Demand for environmental products and services has so far been mainly driven by regulations. Polluting firms are modifying their attitude towards the environment. The government is encouraging them to invest in waste minimization, recovery and treatment to develop clean technologies and products.
Municipalities are also encouraged to recycle their urban solid wastes. The EU has determined that solid waste collection, removal, and disposal infrastructures must be effectively established throughout the EU before the end of the year 2000.
Accordingly, best sales prospects for U.S. exporters include filtering and purifying machinery and apparatus, sensors and analyzers, recycling equipment, and heavy metal collecting equipment. Over the next five to ten years, several billion dollars will be spent on solutions to Portugal's environmental problems. There are plans to provide adequate treatment for about 35% of the national urban solid waste produced. Funded by EU (USD 984 million) and Portuguese national and municipal budgets (USD 260 million), the total cost of solid waste projects is expected to be USD 1.2 billion. The U.S. shares about 6% of this market. An average annual growth rate of 10-15% is expected during next two years.
Most promising subsectors within the sector, along with estimated 1999 total market size of each subsector (USD million): - Filtering and Purifying Machinery and Apparatus 137
DATA TABLE 1997 1998 1999 A) Total Market Size 146 169 185 B) Total Local Production 25 28 30 C) Total Exports 16 16 17 D) Total Imports 137 157 172 E) Imports from the U.S. 9 10 12 Exchange rates (1998) 175
Import and export statistics for 1998 were provided by ICEP - Investimento, Comercio e Turismo de Portugal (the Portuguese Foreign Commerce Institute). All other statistics are unofficial estimates.
09 - AIR TRAFFIC CONTROL EQUIPMENT (APG)
Portugal is increasing aircraft, passenger and air cargo traffic at an average rate of 4% per year. Current arrival figures stand at 15.5 million passengers and 148,000 aircraft. This trend has led to the expansion and modernization of existing airports and plans for the construction of a new national airport. The modernization and expansion projects started some years ago and are expected to be completed before the end of 1999 for the Lisbon airport. Expansion of both the airports of Porto and Faro in continental Portugal, and the airports of the Portuguese Islands of Madeira and Azores are still underway. This will support a growing market for Air Traffic Control Equipment (ATC). ANA - Aeroportos e Navegacao Aerea EP and its affiliate ANAM (Madeira airports) is the public enterprise authority that operates and manages the nine airports in continental Portugal, Azores and Madeira. It is also responsible for two flight information regions, one located in Lisbon and the other in Santa Maria, Azores. These two areas of responsibility of ANA were respectively given to ANA-Aeroportos de Portugal SA, and NAV-Empresa Publica de Navegacao Aerea de Portugal SA, two companies created by the division of ANA. Planning for a new USD 2.1 billion national airport, scheduled to open in 2007 is underway. A recenet anouncement has confirmed that the new airport will be built in Ota. The Lisbon airport will be operating near capacity by 2007 as a steady 4-5% increase in passenger traffic is projected. ANA EP plans to invest USD 200 million by 2000 in the renovation and modernization of the international airports of Porto, Lisbon and Faro. The largest investment share, mostly completed, was for Lisbon airport. Approximately USD 40 million will be spent upgrading Faro's airport. Porto's airport will receive USD 36 million. The two new Portuguese airport companies that resulted after the split of ANA are scheduled for privatization in the near term.
In 1998, the ATC equipment market (which includes ground handling and air navigation equipment) in Portugal was about USD 62 million, increasing nearly 10% over 1997's total market of USD 57 million. The import market in 1998 was approximately USD 57 million. It is expected to increase at an average rate of 9% to reach USD 66 million in 2000.
DATA TABLE 1997 1998 1999 A) Total Market Size: 58 62 66 B) Total Local Production 14 15 16 C) Total Exports: 9 10 11 D) Total Imports: 53 57 61 E) Imports from the U.S. 7 8 8 Exchange rates (1998)175
10 - AUTOMOTIVE PARTS / SERVICE EQUIPMENT
The total Portuguese market for Auto Parts and Service Equipment was USD 1.36 billion in 1998. An estimated growth rate of 5-6% is expected over the next three years. It should be kept in mind that a large percentage of this is for use by local auto assembly plants.
The Portuguese automobile market exploded six years ago, as a rising standard of living and EU money raised income levels. The market for new automobiles is now relatively flat. Automobile prices in Portugal are among the highest in the EU and the average vehicle on the road is approximately 4-5 years old. However, the Portuguese market for automobile components has good potential and imported equipment is needed. The independent component industry is still relatively unsophisticated with production focusing on the manufacturing of low-tech products. Demand for components is projected to increase especially as the national automotive park ages.
Best prospects:
HS 842123 Oil or fuel filters
HS 851110 Sparkplugs
HS 851180 Motor Diagnosis Equipment
HS 870839 Brakes
HS 870870 Wheels/rubber tires
TRADE BARRIERS
The EU Customs Code (Code) was fully adopted in Portugal as of January 1, 1993. Special tariffs exist for tobacco, alcoholic beverages, petroleum and automotive vehicles. The Code adopts the directives of the General Agreement on Tariffs and Trade (GATT) including the amendments that resulted from the Uruguay Round of which Portugal is a signatory member.
Portugal uses the Harmonized Tariff and Classification System (HS) and applies import duties according to a maximum and minimum rate schedule. The minimum tariff schedule is applied to goods originating in countries entitled to the benefits of most-favored nation treatment (that is, members of the GATT and countries with which the EU has signed trade agreements) including the United States and most other countries. NOTE: This sector is listed only because it is a regional Best Prospect for the Showcase Europe program.
11 - MEDICAL EQUIPMENT (MED)
NARRATIVE:
As in previous years the health sector continues to be one of the announced priorities for the Portuguese Government. The infusion of structural funds from the European Union constantly supports the reorganization and expansion of this sector. There are several newly built hospitals and construction of new hospitals and clinics continues. The increase of new hospitals creates an exceptional demand for all types of equipment and also adds to regular demand of supplies as well as replacement of instruments and equipment.
The Portuguese market for medical equipment, instruments and supplies is continuously growing at a rate of 0.7% per year. Portuguese production does not meet market requirements and importation should grow slightly faster than total market demand. Government policies and private sector expansion should increase demand for all equipment, supplies and services in this sector, thus creating a promising climate for American exporters.
The US, traditionally perceived as a preferential supplier of dependable top quality products, has a relative advantage among its competitors and is slowly increasing its share of the market. The U.S. share was about 14% in 1997, with Germany and Spain as its principal competitors. Below is a list of the medical equipment/devices of which the U.S. was the number one supplier to Portugal in 1997, and which are considered best prospects:
901814 Scintigraphic apparatus 12.4 901819 Electro-diagnostic apparatus 3.9 901839 Medical needles, catheters, canulae and its parts and accessories 6.7 901850 Ophthalmic instruments and appliances 1.3 901890 Instruments and appliances for medical/surgical or veterinary sciences and its parts and accessories 1.5 There is EU harmonized legislation governing the importation of medical devices in Europe. As in other EU countries, it is required that medical devices imported from third countries being sold in Portugal undergo an analysis test by a credited entity in the EU. If devices pass this test, they are marked "CE" and may then move freely and be sold in all countries throughout the EU.
DATA TABLE: 1997 1998 1999 A) Total Market Size: 214 229 231 B) Total Local Production: 109 115 116 C) Total Exports: 102 111 102 D) Total Imports: 207 225 227 E) Imports from the U.S. 33 42 42 Exchange rates (1998) 175
Import and export statistics for 1997 were provided by ICEP-Instituto do Comercio Externo de Portugal (the Portuguese Foreign Commerce Institute). All other statistics are unofficial estimates.
12 - TOURISM (TRA)
Statistics for US arrivals rank Portugal 48th in 1997. This is an increase of 10.6% compared to the previous year. In 1997, 62,877 visitors entered the US compared to 56,847 in 1996.
Portugal has a large number of emigrants living in certain areas of the U.S., thus generating a reasonable amount of Portuguese citizens traveling to those regions. CS Portugal is promoting States that have large Portuguese communities as tourist destinations and is emphasizing tourist attractions in each of those States. The objective is to increase the interest and visits by Portuguese tourists to these attractions when they are in the U.S. CS Portugal works closely with State Tourism Offices and other Tourism entities and organizes Familiarization and Press trips to the destinations we promote. Current destinations are California, Florida, Louisiana, Maryland, Massachusetts, Nevada, New Jersey and Rhode Island.
NOTE: This sector is listed only because it is a regional Best Prospect for the Showcase Europe program.
13 - DEFENSE ARTICLES AND SERVICES
Note: Although Defense is a best prospect it is not rated since products come from a variety of sectors.
The Portuguese military sector has experienced recent declines in both personnel and spending. Although nominal spending shows an increase, real buying power is down and is holding at less than 5% of the national budget.
Because Portugal is in the lower income category of the European Union (EU), it has been the recipient of financial assistance for most major acquisitions. Portugal will continue to try to utilize these programs to the greatest extent possible in the future. Forecast defense spending in 1999 is approx. USD $2.5 billion. This is 2.3% percent of the GDP and represents a 2% increase over 1998 spending and a 4.5% increase over 1997 spending. Almost 8% of the 1999 defense budget or approx. USD $194 million is earmarked for procurement.
The defense sector is being reorganized through the creation of a private structure under state ownership. In 1997 the Portuguese Government created a company, Empordef-Empresa Portuguesa de Defesa, SA to hold its 100% ownership of OGMA and INDEP. Through INDEP, Empordef also holds the following interest shares: 51% of SPEL-Soc. Portuguesa de Explosivos (manufacturer of military and industrial explosives), 24% of EID (Electronics investigation and development), 33% of EDISOFT (software development) and 8% of NOVEMBAL (manufacturing and marketing of packaging products). Empordef's charter centers on a five-year investment and development plan for Portuguese defense industries. It is the decision-maker for the investments required for the modernization and expansion of defense industry. Privatization in this sector is also being discussed. But while nothing has been decided regarding privatization of OGMA or INDEP, the smaller non-military participations gained through INDEP are expected to be sold out soon.
The greatest opportunities for American businesses are in cooperative production in Portugal. America's reputation for low prices, high quality and large market share make it a valuable business partner. As the emphasis continues on unity within the European Union, the barriers to U.S. access to this market will grow. But Portugal could still be the gateway through which American firms gain access to the much larger European market.
In order to stretch limited budget resources, new systems acquisitions will be tightly controlled with financial incentives remaining a key part of the negotiation. There will be an ongoing need for logistic support in addition to periodic planned upgrades. Major planned or desired acquisition and upgrade projects are listed below by service:
* Army: Field artillery and air defense artillery with associated radar, electronic targeting and communications equipment; light to medium lift helicopters; Wheeled armored vehicles; and battlefield and weapons simulation equipment.
* Navy: Submarines, torpedoes, missile system improvements, shipboard self defense systems, equipment upgrades for marines, hydrographic/ oceanographic outfitting for a new hydrographic ship, communication enhancements, and transport logistics multipurpose ships.
* Air Force: Mid life updates for two squadrons of F-16 aircraft. AMRAAM missiles, ground radar updates, aircraft anti-missile warning systems, P-3 fleet upgrade, SAR helicopters, transport aircraft fleet replacement/upgrades.
BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
(1,000 Metric Tons)- SOYBEANS
Soybeans are the number one U.S. agricultural export to Portugal in value terms (83 million USD during CY-1997). The level of imports will be up in CY-1998, stimulated by competitive prices as well as a strong demand for oilmeal from the feed sector. U.S. sales are affected by the level of prices of South American beans. Brazil is the leading competitor (317,000 Mt in CY 1997).
DATA TABLE
(Calendar Years): Units: 1,000 M.T.1997 1998 1999 A )Total Market Size: 615 700 780 B) Total Local Production: 0 0 0 C) Total Exports: 9 10 11 D )Total Imports: 624 710 791 E) Imports from the U.S. 275 313 349 Trade statistics for CY-1997 were provided by INE - National Statistics Institute. All others are unofficial estimates.
- CORN
After soybeans, corn was the number two CY-1997 U.S. agricultural export to Portugal (69 million USD). Grain exports into the EU are subject to high tariffs, but the U.S. has access to a special Portuguese 500,000 MT corn quota for non-EU suppliers, under which the 1997 and past years' exports took place. Policy problems related to the clearance process of new bio-engineered corn varieties seeded in the US have led to a temporary suspension of corn imports from the U.S. during CY-1998. Trade with the US will revert back to its previous level as soon as the EU has developed a speedier process of clearing new seeds varieties. The local feed industry has a marked preference for U.S. corn, which supplied 100% of the market till Portugal joined the EC in 1986 and virtually all of the market under the special quota until the political problems of 1998. France is the major competitor (454,000 Mt in CY-1997).
DATA TABLE
(Calendar Years)1997 1998 1999 A)Total Market Size: 1,896 2,030 2,050 B)Total Local Production: 815 830 830 C)Total Exports: 2 2 2 D)Total Imports: 1,083 1,202 1,222 E)Imports from the U.S. 491 0 500 Units: 1,000 M.T Trade statistics for 1997 were provided by INE - National Statistics Institute. All others are unofficial estimates.
- CORN GLUTEN FEED (C.G.F.)
C.G.F. is an important agricultural product for U.S. exporters, even if current corn price trends have been displacing CGF in feed production. Moderate reductions in CGF imports are anticipated for CY-1998 and CY-1999 as a consequence of the higher 1997 and 1998 EU corn crops. The U.S. is virtually the only supplier of this product, which totaled 69 million USD in CY-1997.
DATA TABLE
(Calendar Years Units: 1,000 M.T.1997 1998 1999 A) Total Market Size: 537 510 500 B) Total Local Production: 0 0 0 C) Total Exports: 11 11 11 D) Total Imports: 548 521 511 E) Imports from the U.S.: 534 508 498 Trade statistics for 1997 were provided by INE - National Statistics Institute. All others are unofficial estimates.
SIGNIFICANT INVESTMENT OPPORTUNITIES
As Portugal rapidly integrates into the EU and Portuguese economic development approaches the level of other economies in the Union, the number of business opportunities increases and the country becomes a more attractive destination to exporters and investors.
Importation will grow because industrial modernization requires a large volume of machinery, equipment and instruments and consumers require more and better products. Inter-EU import duties have ended. Import duties vis-a-vis third countries have been reduced to EU levels.
Given the priorities of the EU and the Portuguese government in the spending of structural funds and considering where U.S. companies have a clear technological and industrial edge, the following sectors are the most attractive:
- telecommunications - environmental pollution control/ waste management - health systems and medical equipment - computers and peripherals, software - energy conservation - seafood - laboratory equipment - franchising - upscale tourism - port renovation
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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