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U.S. Department of State
Belgium Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE
FOR BELGIUM
FY 1996
TABLE OF CONTENTS:
I. EXECUTIVE SUMMARY
II. ECONOMIC TRENDS AND OUTLOOK
-Macroeconomic trends and outlook
-Principal growth sectors
-Budgetary priorities
-Monetary policy
-Privatization
III. POLITICAL ENVIRONMENT
-Overview
-U.S./Belgian relations
IV. MARKETING U.S. PRODUCTS AND SERVICES
-Entering the market
-Distribution and sales channels
-Use of agents and distributors
-Watching for pitfalls
-Pricing and selling factors
-Getting help
-Using a regional approach
-Franchising
-Distribution and coordination centers
-Setting up an office
-Protecting your product from IPR infringement
-Need for local attorneys
-Advertising and trade promotion
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
A. Industrial and service sectors
B. Agricultural sectors
C. Other possibilities
VI. TRADE REGULATIONS AND STANDARDS
A. Introduction
-Effects of the single market
-Customs valuation
-Import/export licenses and quotas
-Value added tax
-Bonded warehouses
B. Documentation required for U.S. exports to Belgium
-Shipping documents
-Commercial Invoice
-Bills of lading
-Packing list
-Certificate of origin
-Insurance certificate
-Steamship company certificate
-U.S. shippers export declaration
-Consular fees
-Export controls
C. Packaging and labeling in Belgium
-What language to use
-Marking and other requirements
-Belgium's ecotaxes
-European Union requirements
-Recycling, packaging, and waste management
-Electronic waste
-Eco-labels
-The CE mark in the European Union
-Contact information
D. Standards in Belgium and the EU
-The importance of ISO 9000 in selling to Europe
-Product and technical standards
-Contacts
E. Trade barriers
-Government procurement
-Regional environmental differences
VII. INVESTMENT CLIMATE
1. Openness to foreign investment
2. Investment barriers
-investment climate
-impact of regionalization
-closed retail sector
3. Conversion and Transfer policies
4. Expropriation/compensation/and dispute settlement
5. Investment incentives and performance requirements
6. Right to private property
7. Protection of property rights
8. Regulatory system: laws and procedures
9. Efficient capital markets and portfolio investment
10. Political Violence
11. Bilateral investment agreements
12. OPIC and other insurance programs
13. Labor laws and climate
14. Foreign trade zones/free ports
15. Capital outflow policy
16. Foreign direct investment statistics
VIII. TRADE AND PROJECT FINANCING
-Overview of the banking and financial system
-Hints on financing exports
-Key banks in Belgium
IX. BUSINESS TRAVEL
-Business customs and infrastructure
-List of Belgian holidays - 1996
X. APPENDICES:
A. COUNTRY DATA
B. DOMESTIC ECONOMY
C. TRADE
D. INVESTMENT STATISTICS
E. U.S. AND COUNTRY CONTACTS
F. MARKET RESEARCH
G. TRADE EVENT SCHEDULE
I. EXECUTIVE SUMMARY
Belgium is the ninth largest trading nation in the world. It is highly
outward looking due to its long history of reliance on international
trade. Because of this history and the lack of natural resources,
Belgian business both imports and exports. Imports and exports are
equivalent to nearly 70 percent of GDP, making Belgium one of the
highest per capita exporters in the world. Belgium imports many basic
or intermediate goods, adds value, and then exports final products.
Belgium's major exports to the world are cars, electrical equipment, cut
diamonds, iron, plastic, organic chemical products and refined
petroleum. The country's main exports to the U.S. include diamonds,
chemicals, refined petroleum products, bicycles, textiles, steel, and
steel products. Major imports from the U.S. include petroleum products,
transportation equipment, diamonds, computers and related equipment and
services, as well as soybeans. Main imports from the rest of the world
are organic chemical products, plastic, steel, rough diamonds, assembled
cars and electrical equipment. About 75% of Belgium's foreign trade is
with other EU countries, pointing up the country's importance as a
commercial axis in Western Europe. Lying in the heart of Europe and
being a faithful adherent to EU integration policies, Belgium stands to
benefit greatly from the developing single market.
Belgium and the United States have strong reciprocal trade relations.
Belgium is the twelfth largest market in the world for U.S. products and
took $10.9 billion in American exports in 1994, providing us with our
third largest trade surplus. The Belgian market has great depth and
diversity in its import mix, with many excellent growth sectors.
Belgium has an excellent network of distributors, who are often regarded
by the French and Germans as a neutral source of goods. Belgium is
blessed with an excellent transportation network of ports, railroads,
and highways. Major U.S. air cargo carriers have created one of the
first and perhaps only European hub and spoke operation. Due to its
history and location, Belgium is a true cultural microcosm of Europe,
with three linguistic communities: French, Dutch and German. This
diversity, combined with its small, manageable size, makes Belgium an
excellent test market and subsequent launching pad for European
operations of U.S. businesses. Because the Belgian market is highly
competitive, the Belgian consumer has become used to the introduction of
new products and is quite discerning in his/her choice.
Belgium maintains an excellent investment climate for U.S. companies.
U.S. investment in Belgium - $11.6 billion IN 1993 - ranks 13th in the
world. The United States is the largest foreign investor in Belgium,
which is home to over 1,200 American companies. Since the end of World
War II, American businesses have played an active and important part in
the Belgian economy. Foreign companies are treated exactly the same as
Belgian businesses. There are no restrictions on repatriation of
capital and profits and no requirement that a Belgian national own part
of the firm's equity. In a 1992 study performed by the KUL, a major
Belgian university, 3,100 top industry and service companies in Belgium
were examined. These companies represent 88% of the added value in the
country; one third of them are owned by foreigners. The foreign
companies are mainly from the United States (25%), the Netherlands
(17%), France (16%), Germany, and Great Britain (both 12%). A 1992
study by Ernst and Young concluded that Belgium will be the second most
popular site in Europe for investment over the next five years. The
study also showed that Belgium ranked fourth out of twenty two countries
as a host to European subsidiaries or headquarters of the 100
multinationals surveyed.
The rapid expansion of Brussels as the corporate decision center of
Europe and as a place for meetings and congresses has attracted over
1,300 European headquarters of foreign companies and institutions to
Brussels - 597 of them American, followed by France, Great Britain,
Germany, Japan, Sweden, and Italy. The Belgian government has adopted a
number of corporate tax incentives in order to make Belgium an
attractive country for foreign investors. The tax authorities have
established special corporate tax rules for foreign companies intending
to establish coordination centers, distribution centers, or foreign
sales corporations in Belgium. The success of these measures is
indicated by the fact that to date, 250 (of which 83 are of American
origin) multinational companies have adopted the status of coordination
center. Brussels and other locations in Belgium are regarded in a
number of recent surveys as among the top ten locations for a U.S.
business in Europe. The quality of Belgium's R and D facilities is one
of the reasons most cited for this high ranking.
Overall, government leaders at all levels are very supportive of open
trade and investment. That does not, however, always translate into a
commercial environment easy for U.S. companies to understand or operate
in, and American companies do sometimes encounter trade or investment
problems. Those problems often result from the Belgian penchant to
compromise and avoid confrontation. They also sometimes result from the
unclear division of responsibilities among local, regional, and federal
authorities. This lack of clear responsibility can lead to bureaucratic
delays and inaction. It can also lead to inconsistent legislation and
implementation.
Despite such barriers, there are excellent opportunities in Belgium for
U.S. exports and investment. They include:
--trade with Belgium in many industrial and service sectors;
--trade with Belgium in a number of agricultural sectors;
--partial privatization of Belgacom (the state telecommunications
company) worth $ 900+ million;
--location of a European-wide distribution center in Belgium;
--location of a European-wide coordination center in Belgium; and
--development of a strategic alliance with a Belgian firm in one of the
following sectors: communications, biotechnology, the environment,
energy, chemicals, and pharmaceuticals; such a venture could be
targeted at Western Europe, Eastern Europe, or the Middle East.
The Country Commercial Guide (CCG) on Belgium contains detailed
information on exporting to Belgium or locating a business in Belgium.
CCGs are available on the National Trade Data Bank on CD rom or through
the Internet. Please contact STAT-USA at 1-800-STAT-USA for more
information. To locate CCGs via the Internet, please use the following
worldwide web address: WWW.STAT-USA.GOV. CCGs can also be ordered in
hard copy or on diskette from the National Technical Information Service
(NTIS) at 1-800-553-NTIS.
II. ECONOMIC TRENDS AND OUTLOOK
MACROECONOMIC TRENDS AND OUTLOOK:
In 1994, the Belgian economy recovered particularly well from the very
poor economic results posted in 1993, when real GDP declined 1.7 percent
(the worst figure since World War II). Despite a slowdown beginning in
the second quarter, real GDP growth should be around 2.3 percent in
1995, almost identical to the 1994 figure. Inflation remains firmly in
check at 2.4 percent in 1994 and under 2 percent in the first four
months of 1995. If the profile of the current business cycle were to
fit that of the previous one, Belgium should have some more years of
economic expansion ahead. But one should not forget that the previous
cycle included the German reunification process, with its initial sharp
increases of Belgian exports to Germany and the subsequent deflationary
impact of high German interest rates.
As a consequence, there still remains a large degree of uncertainty
about the strength and sustainability of Belgium's economic recovery.
The fact that Belgian industry has been specialized for a number of
years in the production of semi-manufactured goods for which demand is
particularly strong during the take-off phase of the business cycle
favored Belgium over the past year. Exports of goods and services grew
by 6 percent in 1994. As the economic cycle matures in Europe and the
Belgian franc's (BF) strength affects exports, this stimulus will
gradually disappear. Exports of goods and services may remain strong,
but will no longer give the economy the lift they have so far.
Domestic consumption was expected to substitute for net exports as the
driving force in the expansion, but unlike in neighboring countries,
this has not yet happened in Belgium. In contrast to most forecasts,
the Belgian savings rate of 20 percent has remained steady, leading to
weak household consumption. Private sector investment declined for the
third consecutive year in 1994. The near-inflationary level of capacity
utilization (more than 80 percent) in industry, however, suggests that
investment will pick up shortly.
The current account surplus of the Belgium-Luxembourg Economic Union
(BLEU) increased to 5.1 percent of GDP (BF 410 billion) in 1994, the
third largest surplus of all OECD members (after Japan and the
Netherlands). Attractive as this may seem, at least one-third of this
surplus should be attributed to the Luxembourg financial center.
Furthermore, a net creditor position towards the outside world is what
one would expect from a mature developed country with an aging
population. The large size of the foreign asset position can also be
attributed to weak investment spending, which may reflect the lack of
profitable domestic projects.
BLEU imports and exports, which declined sharply both in prices and in
volumes in 1993, picked up strongly in 1994. Exports grew from BF 3,777
billion ($130.2 billion) to BF 4,035 billion ($139.1 billion). Imports
went from BF 3,572 billion ($123.2 million) to BF 3,830 billion ($132.1
billion). Since prices increased only slightly in 1994, most of this
increase can be attributed to increased volumes. Belgium's exports
profited from increased exports to Japan, as well as the continuing
strength of Southeast Asian markets, where BLEU exports tripled between
1987 and 1994. However, more than 80 percent of Belgium's exports still
go to the other EU member states (mainly Germany, France and the
Netherlands). The equivalent of 70 percent of the country's GDP is
exported, compared to only 20 percent in neighboring France. This makes
Belgium very vulnerable to the international economic climate. In fact,
it is doubtful whether important export sectors such as textiles, metal
construction and wood will be able to maintain their 1994 export levels,
since they reportedly suffer from the strong performance of the BF
against the U.S. dollar and the weaker European currencies. The
National Bank of Belgium has calculated that the growth in export
volumes is smaller than the global export growth as calculated by the
OECD, implying that Belgian exports are losing market shares.
The Belgian labor market showed little improvement, despite the renewed
strength of the economy. In 1994, some 27,000 jobs were lost (net) in
the Belgian economy, compared to a loss of 53,000 the year before.
Standardized EU data puts Belgian unemployment at 10.2 percent in 1994,
compared to 11.2 percent for the EU average. The beginning of 1995 saw
the first decline in unemployment figures since 1992. At the end of
March, the number of unemployed dropped 30,000 below the March 1994
figure. Most economists believe that the Belgian economy needs real
growth of at least 2.5 percent before job growth can reduce the
unemployment rate, and Belgium is currently precariously balancing
around that figure. The long term trend remains that efforts by
business to neutralize the high labor costs have pushed up productivity,
but aggravated the unemployment problem by reducing the labor intensity
of economic growth.
PRINCIPAL GROWTH SECTORS:
The growth in the various sectors of the Belgian economy partly reflects
the development of the macroeconomic situation in general. The industry
sectors which are most oriented towards foreign markets gained during
the upswing in the economic cycle, in particular those in the semi-
finished goods sectors such as iron and steel, non-ferrous metals and
chemicals. The sectors oriented towards the production of investment
goods still suffered from the lukewarm investment picture in Belgium in
1993 (minus 7.4 percent) and 1994 (minus 2.8 percent). Weak demand in
the consumer product sector, coupled to the depreciation of some EU
currencies against the BF, continues to hamper the textiles, wood and
food sectors. Apart from these developments specific to the business
cycle, there were also divergent developments impacting on some sectors:
the paper and cardboard sector in particular have been hit by the
ongoing switch towards the use of less packaging.
The services sector is still structurally dependent on the industrial
sector in Belgium, but it has posted significantly higher growth rates
than the latter over the past ten years. In 1994, the overall turnover
growth in the services sector was 7 percent, and sectors such as
accounting, fiscal expertise, publicity and maintenance are doing
particularly well. On the other hand, sectors largely dependent on
household consumption such as retail, health care and the catering
industry still suffer from the sluggishness of consumption demand.
BUDGETARY PRIORITIES:
The main objective of the Belgian government has been to attain a budget
deficit of 3 percent of GDP by the end of 1996, one of the three
conditions for membership in the first-tier group of the EMU, as
prescribed in the Maastricht treaty. Historically, Belgium has done
relatively better on its budget in times of cyclical downswings. The
total budget deficit at the end of 1994 (federal, regional plus social
security) amounted to 5.3 percent of GDP. For the first time since the
late seventies, Belgium thus came slightly below the EU average. For
1995, the government has already announced measures equivalent to 0.8
percent of GDP (despite 1995 being an election year). The new
government, elected in May of 1995, faces the challenge of a 1996 draft
budget with a mix of spending cuts and revenue increases equivalent to
1.5 percent of GDP (BF 105 billion or $3.62 billion). The High Council
for Finance, an official budgetary think tank, has calculated that BF 45
billion ought to come from the federal budget, another BF 40 billion
from social security and BF 20 billion from Belgium's regions and
communities.
Since revenue enhancing measures are more certain in their effect than
expenditure cuts, the next government is expected to focus on increasing
indirect taxes, introducing an energy tax and means testing family
allowances. If the previous coalition is any measure, the most likely
mix will be three-quarters of extra revenues and one quarter of
expenditure cuts. The likely future coalition partners seem to be well
aware of the deflationary risks of such policies, but they have very few
alternatives: between 1992 and 1995, the Dehaene government already took
budgetary measures worth BF 500 billion ($17.2 billion), almost the
equivalent of 7 percent of GDP. Belgium cannot possibly bring its
accumulated debt down from the present level of 128 percent of GDP to
the Maastricht target of 60 percent. In order to meet the "substantial
progress" criteria for its debt, Belgium will need a net primary surplus
(i.e. net of interest payments on the debt) of some 6 percent of GDP
until the end of the decade for it to become a first-tier EMU member.
MONETARY POLICY:
Since June 1990, Belgium has bound its monetary policy to Germany's by
anchoring the BF to the Deutschmark (DM). By thus tying their hands,
monetary authorities send out a clear signal that inflationary pressures
will not be accommodated. This is particularly important for a small
open economy with a high public debt. The recent experience in other
European countries shows that apparent autonomy in monetary policy can
only be achieved at the cost of foreign exchange instability (and the
risk of imported inflation).
The difficulties experienced by the BF during the 1993 period of turmoil
in the European Monetary System (EMS) proved to be of a temporary nature
and did not lead to a change in policy. Belgium has not needed to test
the plus/minus 15 percent fluctuation margins available in the EMS's
Exchange Rate Mechanism (ERM) since August 1993. The BF has stayed
within a narrow margin of 0.3 percent around its parity with the DM,
despite gradual short-term interest rate cuts. Most of the time, the BF
has been quoted slightly above its ERM parity, undoubtedly helped by the
continued and growing current account surplus.
Such a policy implies a close shadowing of the German interest rates,
both long and short. It is noteworthy that as soon as the interest rate
differential between DM and BF drops under half a percentage point,
dealers start selling Belgian bonds. This differential is probably the
price to pay for a net cumulative debt of 128 percent of GDP.
Recently, industries facing strong competition from firms in countries
whose currencies have depreciated, such as textiles, clothing, wood and
mechanical construction, have complained bitterly about the effect of
the "competitive" nature of recent currency depreciation. National Bank
Governor Verplaetse countered that Belgium cannot afford to allow the BF
to depreciate. Higher interest rates would have a serious impact on the
budget and Belgium's wage indexation system would quickly transmit any
imported inflation into the labor market. Furthermore, 60 percent of
Belgian exports go to EU member states whose currencies are linked, like
the BF, to the DM and a strong BF means lower import prices and hence
lower inflation.
PRIVATIZATION:
In 1994, the Belgian government took in BF 55 billion ($1.9 billion) in
privatization receipts: BF 15.1 billion from the sale of the National
Investment Company (NIM/SNI), BF 15 billion from monopoly rights of the
National Lottery and BF 25 billion as an advance on the future
privatization of part of Belgacom, the public telephone operator. In
May 1995, the government announced the partial privatization of Sabena,
the national carrier, through a joint-venture with Swissair. Since the
deal with Swissair requires the Belgian government to invest at least BF
4 billion to Sabena's recapitalization, there are no privatization
proceeds to be reaped.
For 1995, several privatization projects are still in the pipeline, but
the next government will decide their fate. First, there is the sale of
the public sector bank NMKN-SNCI, expected to bring in BF 4 billion. At
the moment, only private Belgian banks seem to be interested. Second,
there is the sale of the small public sector bank CBHK jointly to
Belgium's private banks, which would use the bank as a vehicle to
securitize their mortgages with a government guarantee. Third, there is
also the sale of the Belgian embassy grounds in Tokyo, estimated at BF
12 billion. And last but not least, Belgacom, the government-owned
telecommunications company, still needs to find an important
international partner, as the Belgian government has merely taken a cash
advance on the sale of between 25 and 49 percent of its assets.
Meanwhile, the government has concentrated the remainder of its asset
portfolio (currently valued at some BF 500 billion) in the ASLK-CGER
holding.
III. POLITICAL ENVIRONMENT
OVERVIEW:
Belgium has been a constitutional monarchy since 1930. Albert II was
invested as King in August, 1993, after the death of his brother
Baudouin. The King, Prime Minister and Cabinet represent the executive
branch of the federal government, with the newly-formed 71-member Senate
and 150-member Chamber of Deputies representing the legislative branch.
The Cabinet must retain the support of a majority in the Chamber of
Deputies to remain in power. Federal parliamentary elections are held
every four years or before that if the government loses the support of a
majority in the Chamber and no alternative coalition can be formed.
There is universal suffrage, with compulsory voting and proportional
representation. Governments are always coalitions comprising two or
three of the traditional parties - the Christian Democrats (center), the
Socialists (left wing) and Liberals (right wing). Elections were last
held in May 1995, with no party gaining an absolute majority of votes in
either of Belgium's two linguistic regions.
The government formed in June 1995 is a coalition of Christian Democrats
and Socialists, led once again by Prime Minister Jean Luc Dehaene. The
central plank of its platform is reform of the social welfare system in
order to stimulate job creation and to help Belgium meet Maastricht
budget norms to be one of the first tranche of countries which joins the
European Monetary Union. Along with espousing early entry into EMU, the
platform also proposed an active role by Belgium during the 1996 EU
Intergovernmental Conference, with emphasis on deepening European
integration.
The most significant, long-term factor in Belgian politics is the
gradual devolution of powers from the central authority to the regions.
In the new federal structure, approved in July 1993, sovereignty is
spread over three authorities: the central state, the regions and the
language communities. There is no hierarchy between these policy
levels. Each of the three levels has its own exclusive powers and is
not allowed to interfere in matters that are under the jurisdiction of
the others.
The regions are Flanders (northern, Dutch-speaking part of Belgium),
Wallonia (souther, French-speaking area), and Brussels (the capital
regions, limited to 19 bilingual communes). Each region is responsible
for a wide range of socio-economic matters for its own territory.
Elected regional assemblies for Flanders, Wallonia and Brussels exercise
legislative powers within their own regions and elect executive
authorities. Under the evolving federal system, the responsibility for
areas of interest to U.S. business - such as foreign trade, environment
and investment regimes and incentives - will increasingly become the
responsibility for the regional governments. This devolution means that
Americans wishing to do business in Belgium will eventually have more
contact with regional officials than in the past.
U.S.-BELGIAN RELATIONS:
U.S.-Belgian bilateral relations are excellent. Active in international
diplomacy in Europe, Africa and the Middle East, Belgium is a close ally
and works with the United States on many international issues.
Successive Belgian governments have been committed to the development of
a strong, federal European Union with the ability to set common foreign
and security policies as well as common economic policies. These
governments have also been proponents of strong transatlantic ties
within NATO. The current Dehaene government has repeated its desire for
close ties with the United States on security issues and has expressed
support for enlarging NATO to accommodate certain former Warsaw Pact
nations.
Belgium is home to the European Union, NATO, WEU and over 100 other
international organizations. Belgium is a substantial aid donor, making
bilateral and multilateral contributions to humanitarian aid and
development programs. In addition, Belgium is a provider of
peacekeeping troops and has participated in various peacekeeping
operations in Somalia, Rwanda and former Yugoslavia. As a member of the
IMF Executive Board, the G-10, NATO, the UN, EU, WEU and EUROCORPS,
Belgium wields significant weight in world affairs.
IV. MARKETING U.S. PRODUCTS AND SERVICES
ENTERING THE MARKET, DISTRIBUTION AND SALES CHANNELS, USE OF
AGENTS/DISTRIBUTORS:
Several thousand U.S. companies are selling on the Belgian market
through distributors and agents. The new-to-market U.S. company will
find a large number of well-established representatives in virtually
every industry sector in Belgium. On many occasions, their territory is
larger than just Belgium; often it is the Benelux and one or more
neighboring European countries. Belgian agents and distributors are
often perceived as being neutral sellers by European purchasers. This
places them at a distinct advantage vis-a-vis their German or French
counterparts. U.S. companies will also find that Belgium is an
excellent place in which to locate distribution facilities. It has an
outstanding network of ports, airports, rail, highways, and canals that
can provide cost effective transportation to 300 million consumers in
less than 48 hours. Joint venture and franchising agreements are often
also a good way of entering the market.
WATCHING FOR PITFALLS INC. PRICING AND SELLING FACTORS:
Belgium is a faithful adherent to EU laws and directives, and Belgian
business stands to benefit significantly from a single European market
in the 1990s. The openness of the Belgian market should not, however,
make American companies think that doing business in Belgium is like
doing business next door in the United States. It is not. U.S.
companies need to be aware of cultural and linguistic differences.
There are also regional economic differences, with some parts of the
country wealthier than other parts. In addition, Belgian distributors
tend to be small and specialized. They also do not have ready access to
inexpensive capital, and they are somewhat conservative when it comes to
risk taking. Consequently, potential Belgian representatives will look
to their suppliers for lenient credit terms. Liberal credit terms thus
become a supplier asset though caution should always be exercised before
extending such credit (See Section VIII). Belgium has also established
legal protection for distributors against sudden or unjustifiable
termination of the distribution agreement. It includes measures
assuring the right to receive reasonable notice of termination, and
compensation for loss of income. In addition, the EU has passed similar
legislation protecting agents. American companies need legal advice in
drawing up a representation agreement in Belgium and throughout the EU.
Lastly, the Belgian importer is looking for the best quality at the best
price. He highly regards American products and technology, but Belgium
is a highly competitive market. There are many competitors in the
marketplace, and a U.S. supplier will have to be aggressive and have a
sharp pencil to compete successfully. Markups in Europe tend to be much
larger than in the United States. A useful rule of thumb for consumer
goods is to multiply your U.S. x-factory price by approximately four
times in order to arrive at the likely retail price in Europe.
GETTING HELP:
There are numerous individuals, professional organizations and service
companies, financial organizations and consultants in all disciplines,
prepared to advise and assist parties considering doing business in
Belgium. The American Chamber of Commerce in Belgium is a particularly
active one, with 1,000 paid-up members and several strong and very
effective action committees. Its free services include an "Investment
Referral Service" to help new American companies locate operations in
Belgium and a "Euro-Info Hotline" designed to assist American exporters
with questions related to trading with countries of the European Union.
USING A REGIONAL APPROACH:
The Benelux countries, including Luxembourg, already import $23 billion
a year from the United States - more than Germany, France, or any other
market in Europe except for the United Kingdom. The Benelux countries
provide the United States with its first and third largest trade surplus
in the world. Together, the Benelux countries have over 2,100 resident
American companies, many of which are excellent intermediary markets for
U.S. goods and services. Benelux multinationals are well known
throughout the world, with per capita exports in the benelux near the
top in the world. Finally, the Benelux countries boast outstanding
locations for distribution of american products in europe and offer
considerable incentives for locating European-wide distribution centers.
In order to capitalize on the larger regional Benelux market, the
Commercial Service offices of the U.S. embassies in Brussels and The
Hague are offering a number of joint services as part of a Euroaccess
package. The joint services include the Benelux gold key, rep find,
single company promotion, foreign buyer program, and customized market
research package, as well as a joint newsletter which reaches over 8,000
Benelux importers of American products. The Euroaccess package also
offers double trade events, in such sectors as the environment,
telecommunication, travel, transportation, industrial cleaning, medical,
and hotel and restaurant lines, as well as joint information on
distribution into Europe from the Benelux. A business traveler can save
money by taking the Euroaccess package, combining a visit to these
exciting markets. In short, the Euroaccess package of services is
designed to make certain that the American exporter is successful in
marketing to Europe on the first try.
FRANCHISING:
Although Belgium is a relatively small country of ten million
inhabitants, it is an excellent test market for launching new products
in Europe. Belgian characteristics are very close to European averages
regarding private and public expenditure, GDP per capita, age
distribution, and activity of its population. Consequently, American
franchisors are exploring the market in ever greater depth. For
example, the Belgian franchising market for fast food is growing at an
annual real growth rate of twelve percent.
There are no particular restrictions on opening franchise operations in
Belgium. The European Union's Directive 4087/88 of November 30, 1988,
provides the legal framework for the franchising business in the EU.
Additionally, the European Franchise Federation has developed a European
code of ethics for its members. It outlines a series of provisions of
fair behavior, but does not have the effect of law. Its provisions
include arbitration in case of disputes.
In March 1992, the Belgian Franchising Federation was established. The
Federation is open to both domestic and foreign franchisors operating in
the country. It can provide prospective franchisors with considerable
information on the franchise market in Belgium.
DISTRIBUTION AND COORDINATION CENTERS:
Belgium has developed some very attractive legislation permitting
American companies to set up either distribution or coordination centers
in Belgium. Distribution centers can engage in the purchase of raw
materials for members of the company group, the storage, management, and
packaging of raw materials, the sale to members of the group of these
materials along with their transport and delivery, and certain
operations related to the handling of goods purchased for resale or
finished goods. Recent changes in Belgian legislation now allow even
more activities to be carried out in distribution centers, all taxed at
a favorable cost plus rate. A coordination center, by contrast, is
designed to permit a multinational group to perform certain service and
financial activities on behalf of its member companies. In both
distribution and coordination centers, multinationals can derive
significant tax and other benefits from operating in Belgium. For more
information on coordination centers, a U.S. company should contact the
American Embassy in Brussels or contact the following:
Ministry of Economic Affairs
Service for Foreign Investors
Square de Meeus 23
1040 Brussels
Contact: Mr. J. De Buck
Tel: 32/2/506.54.11
Fax: 32/2/514.03.89
Belgian Ministry of Economic Affairs
Coordination of International Investment Policy Service
Square de Meeus 23
1040 Brussels
Contact: Mrs. Francine De Punt
Tel: 32/2/506.52.66
Fax: 32/2/513.74.75
Forum 187
Federation of Coordination Centers
rue Brederode 13/11
1000 Brussels
Contact: Mr. Jean Yves Dopchie
Tel: 32/2/513.39.92
Fax: 32/2/513.64.53
For more information on distribution centers, a U.S. company should
contact the American Embassy in Brussels or contact the following:
Ministry of Economic Affairs
Service for Foreign Investors
Square de Meeus 23
1040 Brussels
Contact: Mr. J. De Buck
Tel: 32/2/506.54.11
Fax: 32/2/514.03.89
Ministry of Finance
Administration of Direct Taxes
Financietoren
Rijksadministratief Centrum Bus 32
Kruidtuinlaan 50
1010 Brussels
Contact: Mr. Patrick Jacobs
Tel: 32/2/210.23.42
Fax: 32/2/210.41.18
SETTING UP AN OFFICE:
The American Chamber, in conjunction with the U.S. Embassy, operates an
outstanding service called the Investment Referral Service. Drawing
upon experts from the financial, accounting, real estate, legal, and
business world, the IRS can be used by American companies considering
opening an operation in Belgium. Upon request, the IRS members will
answer questions regarding a variety of issues either in person or via
letter/fax. U.S. companies considering an investment in Belgium,
including opening a sales office or distribution center, should contact
the American Chamber, Sheila Chabeau, (Tel: 32/3/513-6770 or Fax:
32/2/513-7928) to request use of the IRS. In addition, the Chamber
publishes a booklet, entitled "Doing Business in Belgium", which
provides guidance on a host of issues related to setting up an operation
in Belgium.
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT:
The rights granted under U.S. patent, trademark or copyright law can be
enforced in the United States, its territories and possessions only.
The EU, for its part, has taken a number of initiatives to provide
intellectual property protection, but not all measures haven been
implemented. In cases of non-implementation, national laws still
prevail.
PATENTS:
Belgium is also a member of the World Intellectual Property Organization
(WIPO) and the European Patent Convention (EPC). A single European
patent, valid throughout the EU, does not yet exist, since the community
patent convention has only been ratified by Germany and Greece. In the
meantime, the patent applicant can choose between a national and a
multiple-country patent. In the latter case, a single application to
the European Patent Office in Munich (European Patent Office,
Erhardstrasse 27, D-80331 Muenchen, Germany, Tel: 49-89-23990, Fax:
49-89-23992850) is required for obtaining patents valid in a number of
countries within the EU, and Austria, Liechtenstein, Sweden, Monaco, and
Switzerland. A patent thus granted will not be valid in Belgium unless
a copy of the grant in one of Belgium's three national languages is
filed with the Belgian Office of Industrial Property described below.
To obtain a national patent in Belgium, the inventor or his/her assignee
must file a request with the Office of Industrial Property in the
Ministry of Economic Affairs. After a search of the European Patent
Office in Munich, if requested by the inventor, the Belgian government
will issue the patent without guarantee of patentability. National
patents are valid for twenty years if a search has occurred. If not,
the validity is reduced to six years. Once granted, the patent is
registered with the Register of Patents, again located in the Ministry
of Economic Affairs.
TRADEMARKS:
An EU Trademark Office has now been established in Alicante, Spain and
the first EU trademark registrations are expected in mid-1995.
Trademark registration can be handled through this office:
EU Trademark Office
Mr. Jean-Claude Combaldieu
Av. Aguilera 20
03080 Alicante
Spain
Tel: 346-513-9100; Fax: 346-513-9159
Trademarks in Belgium have been regulated by the Uniform Benelux Law of
1962, which offers protection in Belgium, the Netherlands and
Luxembourg. An application for trademark can be filed with the Belgian
National Office in the Ministry of Economic Affairs or with the Benelux
Trade Mark Bureau located in The Netherlands (Bankastraat 51, The
Hague). A search is required to ascertain the existence of a similar or
identical trademark for the same category of product. If granted,
protection lasts for ten years from the date of application and can be
renewed for further periods of ten years each. Trademarks must be used
within three years of registration or within any uninterrupted period of
five years.
COPYRIGHTS:
Belgium is a member of the Berne Convention and the Universal Copyright
Convention of Geneva. As a member of the UCC, to which the U.S. and 50
other countries belong, Belgium accords authors automatic copyright
protection throughout all UCC countries when registered with this
organization. Protection exists for the life of the author, plus 50
years after death. In addition, Belgium has passed a revised copyright
law which brings Belgian practice into conformity with existing EU
directives. However, EU directives permit some variation in each member
state and U.S. firms wishing to protect their copyrights in Belgium
should consult local legal counsel. This is particularly true regarding
reciprocity provisions in the new law.
Priority areas for harmonization of national law throughout the European
Union have been identified in the European Commission's green paper and
follow-up paper. Steps have been taken in the fields of:
- Computer Programs (adopted): Software protected as literary
work.
- Satellite Transmissions (adopted and in force): Authorizations from
the copyright holder only in the member state from which
the transmission occurs.
- Cable Broadcasts (adopted and in force): Rights for the
simultaneous, unaltered retransmission by cable of programs
would be negotiated exclusively within collective management
societies.
- Rental/Lending and related rights (adopted): Exclusive right
permitting authorities, performers and producers, film and
record producers to authorize or forbid the rental or lending
of their works. Derogations possible. The directive
harmonizes member state legislation on certain neighboring
rights concerning fixation reproduction, distribution,
broadcasting, and communications to the public.
- Databases (proposal): Harmonization of EU copyright rules
affecting databases, including an "unfair extraction" clause.
- Copyright period (in force since July 1, 1995): Copyright protection
70 years after the death of the author; for
neighboring rights: 50 years.
- Design and Model protection (proposal): 25 year period of
protection for industrial models and designs.
NEED FOR LOCAL ATTORNEYS:
Belgium is not a highly litigious country. Nonetheless, U.S. companies
should consult local attorneys for most business transactions. For
example, we have already noted the need for local attorneys when drawing
up an agency or a distribution agreement. The standard U.S. agreement,
which often applies U.S. law, will not suffice in Europe. Local
attorneys are also needed when registering patents, trademarks, or
copyrights. Lastly, local legal advice is essential when setting up an
office, or when establishing a distribution or coordination center. The
Commercial Service of the U.S. Embassy maintains a list of local lawyers
specializing in business transactions in Belgium and Europe.
ADVERTISING AND TRADE PROMOTION:
The U.S. Embassy publishes monthly a professional commercial magazine,
entitled "Business Links", which is sent to over 4,000 Belgian importers
of U.S. products and services, along with 1,000 American companies
operating in Belgium. It is also sent in a similar version to some
3,000 Dutch importers of U.S. products and services. U.S. companies are
free to advertize in the magazine. Rates are available from the
Commercial Section of the Embassy or from the publisher, David Starr,
Computerware, Avenue de la Fauconnerie 60, B-1170 Brussels, Belgium,
Tel: 32-2-660-5468, Fax: 32-2-672-7749.
The American Chamber of Commerce also publishes a monthly magazine,
which goes to its 1,000 members. Consisting of American companies
operating in Belgium and Belgian firms with U.S. business interests, the
Chamber magazine reaches a particular clientele of interest to some
American exporters. Rates are available from the American Chamber (Tel:
32/2/513-6770 Fax: 32/2/513-7928)
In addition, Belgium has a number of sophisticated newspapers and
magazine published in Dutch or French. They are listed below, along
with the one English language magazine published in Belgium, The
Bulletin. English readers in Belgium also can choose from the
International Paris Herald Tribune and the Wall Street Journal's
European Edition.
De Standaard (Dutch daily)
Gossetlaan 30
1702 Groot-Bijgaarden
Tel: 32/2/467-2211
Fax: 32/2/466-3093
Knack (Dutch weekly)
Tervurenlaan 153
1150 Brussels
Tel: 32/2/736-6040
Fax: 32/2/735-6857
De Financieel Ekonomische Tijd (Dutch daily)
BP Building
St. Lazarusplein 2, 6th floor
1210 Brussels
Tel: 32/2/217-2205
Fax: 32/2/217-0976
Trends Magazine (Dutch weekly)
Research Park Zellik
De Haak 2
1731 Zellik
Tel: 32/2/467-5700
Fax: 32/2/467-5758
Le Soir (French daily)
Place de Louvain 21
1000 Brussels
Tel: 32/2/225-5432
Fax: 32/2/225-5914
La Libre Belgique (French daily)
Bd. Emile Jacqmain 127
1000 Brussels
Tel: 32/2/211-2777
Fax: 32/2/211-2832
L'Echo (French daily)
Av. de Birmingham 131
1070 Brussels
Tel: 32/2/526-5511
Fax: 32/2/526-5526
Trends Tendances (French weekly)
Research Park Zellik
De Haak 2
1731 Zellik
Tel: 32/2/467-5900
Fax: 32/2/467-5759
The Bulletin (English Weekly)
Ackroyd Publications
Avenue Moliere 329
1060 Brussels
Tel: 32/2/343-9909
Fax: 32/2/343-9822
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
A. TRADE WITH BELGIUM IS EXCELLENT IN MANY INDUSTRIAL AND SERVICE
SECTORS: (Data in the following tables is in US$ millions and ranked by
next year's expected growth rate in U.S. exports).
1. Telecommunication Services (TES)
a) 4,840 b) 668
2. Computer Software (CSF)
a) 1,800 b) 778
3. Aircraft and Parts (AIR)
a) 720 b) 300
4. Automotive Parts and Services Equipment (APS)
a) 3,774 b) 114
5. Travel and Tourism Services (TRA)
a) 10,015 b) 350
6. Computer and Peripherals (CPT)
a) 1,858 b) 436
7. Telecommunication Equipment (TEL)
a) 2,795 b) 159
8. Computer Services (CSV)
a) 2,132 b) 518
9. Pollution Control Equipment (POL)
a) 1,800 b) 100
10. Printing and Graphic Art Equipment (PGA)
a) 580 b) 218
11. Plastic Materials and Resins (PMR)
a) 2,890 b) 168
12. Textile Fabrics (TXF)
a) 2,100 b) 86
13. Laboratory Scientific Instruments (LAB)
a) 229 b) 127
14. Medical Equipment (MED)
a) 668 b) 120
15. Apparel (APP)
a) 3,050 b) 85
16. Sporting Goods and Recreational Equipment (SPT)
a) 788 b) 8
17. Electric Power Systems (EPS)
a) 3,163 b) 80
18. Building Products (BLD)
a) 12,108 b) 60
19. Seafood (MFI)
a) 650 b) 15
NOTE: a) 1995 estimated total Belgium market size (US$ M.)
b) 1995 estimated imports from the United States (US$ M.)
Rank of sector: 1
Name of Sector: Telecommunication Services
ITA industry code: TES
Narrative:
The Belgian telecom operator BELGACOM is under great pressure to broaden
and modernize its telecom services. Value-added network services are
already subject to free market competition. Several foreign and U.S.
companies have recently started selling value-added network services in
the market. Voice services will continue to be offered under the
monopoly by BELGACOM until 1998. Voice services for closed user groups
are currently offered in competition. Voice services represent 70 % of
total sales, a share which is expected to remain the same in the
foreseeable future. The largest growth is expected to occur in data-
network services. Data-network services currently represent 10% of
total sales and are expected to climb to 15% of total sales in 1996.
Best sales prospects are packet switched network services, frame relay
services, ISDN network services, value-added network services, mobile
voice and data communications services.
Data table 1994 1995 1996
A. Total Sales 4,066 4,840 5,760
B Sales by Local Firms 3,144 3,680 4,306
C Exports by Local Firms N/A
D Sales by Foreign-owned Firms 910 1,160 1,479
E Sales by U.S.-owned Firms 566 668 788
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 2
Name of Sector: Computer Software
ITA industry code: CSF
Narrative:
The Belgian computer software market is characterized by the existence
of a multitude of small local service providers who concentrate on a
small number of clients, and by large foreign suppliers such as IBM,
SNI, Digital, HP and Unisys who cover directly a considerable share of
the market. While the latter are principally hardware suppliers, the
sales of these companies are made up for a large part of software.
The Belgian software market is following the U.S. market very closely.
New product announcements in the U.S. by leading suppliers are
introduced in Belgium only with a couple of months of delay. The total
market for computer software in Belgium is made up for more than one
third of application software. Best prospects here are standard
application software for businesses and home users. The market for
development tools has also grown faster than the total market. While
the European market of software for PCs only grew by 4 percent in value
terms in 1994, the Belgian market performed much better and grew by 18
percent to amount to some $53 million in 1994. This market is expected
to continue to grow at the same pace during the coming years. It is
estimated that some 70% of the users have already opted for Windows.
Window-programs and applications under Windows are expected to continue
to sell very well. Macintosh-applications also continue to sell well.
DOS-applications are no longer in demand.
Data table 1994 1995 1996
A. Total Market Size 1,622 1,800 1,998
B. Total Local Production 608 675 749
C. Total Exports 328 378 435
D. Total Imports 1,342 1,503 1,683
E. Total Imports from U.S 695 778 771
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 3
Name of Sector: Aircraft and Parts
ITA industry code: AIR
Narrative:
SABENA, with its subsidiaries DAT and SOBELAIR, is the only significant
carrier in Belgium. By the year 2000, Sabena will have to replace
eleven 737's. Pending EU's approval, SWISSAIR is soon to replace AIR
FRANCE as partner with 49% of Sabena's capital. It is therefore
expected that Sabena's fleet will be renewed consistently with
Swissair's fleet. EUROBELGIAN AIRLINES (EBA) is a fast-growing charter
company that currently operates eleven 737's. It started with two 737's
in 1991. SABENA TECHNICS plays an important role as a third party
repair and maintenance station. The only significant general aviation
company is ABELAG. It imports, maintains and operates several brands of
general aviation planes and also provides ground handling for heads of
state planes. The number of Belgian companies involved in
manufacturing/supplying aircraft parts is approximately 120. The best
way to contact them is via their trade associations FLAG and GEBECOMA.
To enter the military market, U.S. suppliers should contact the Office
of Defense Cooperation (ODC) via the U.S. Embassy.
Data table 1994 1995 1996
A. Total Market Size 616 720 843
B. Total Local Production 154 169 186
C. Total Exports 38 49 64
D. Total Imports 500 600 720
E. Total Imports from U.S. 250 300 360
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 4
Name of Sector: Automotive Parts and Service Equipment
ITA industry code: APS
Narrative:
Belgium's automobile as well as automotive parts and equipment market
can best be summarized as follows: the number of cars registered is 4
million while the number of maintenance and repair outlets is 13,000.
In addition, its has a very strong assembly industry (GM, Ford, VW,
Volvo, and Renault) that assemble 1.2 million vehicles annually.
Europeans in general, and Belgians in particular, tend to keep their
cars longer than Americans. In Belgium, 54% of the cars are over five
years old. At all times, American garage equipment has been considered
top-of-the line. This holds true especially for high performance test
equipment. This positive image is now further enhanced with the
spectacular come-back of U.S.-made cars. Best sub-sectors include anti-
theft devices, fast-rotating replacement parts, gadgets for in-car
entertainment, and car enhancement and maintenance products.
Data table 1994 1995 1996
A. Total Market Size 2,880 3,774 4,906
B. Total Local Production 1,600 2,080 2,704
C. Total Exports 480 624 811
D. Total Imports 1,760 2,288 3,744
E. Total Imports from U.S. 88 114 148
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 5
Name of Sector: Travel and Tourism Services
ITA industry code: TRA
Narrative:
Travel trends from Belgium to the United States remain buoyant, aided by
a low dollar exchange rate and competitive transatlantic air fares.
Since the Gulf War in 1991, there has been growth at a rate of 7-9% per
annum, which is expected to extend well over 1996. The progression in
the number of visitors has been as follows (000):
Data table 1994 1995 1996
U.S. visitors (thousands) 201 218 236
Fly-and-drive packages, mobile home vacations and youth travel are major
growth sectors. The Visit USA Travel and Tourism Information Center
serves both the travel trade and general public. It services over
20,000 requests annually for information, and organizes travel promotion
events. The two major ones are the Brussels Travel Fair (next event:
November 21-23, 1995), and the Visit USA Seminar (next event: March 7,
1996), where some ninety exhibitors meet over five hundred travel trade
professionals from Belgium and Luxembourg.
Data table 1994 1995 1996
A. Total Sales in Country 9,910 10,015 10,125
B. Sales by local firms 2,935 2,980 3,010
C. Not applicable
D. Sales by foreign-owned firms 6,975 7,035 7,098
E. Sales by U.S.-owned firms 325 350 376
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Para E, sales by U.S.-owned firms, excludes sales of airline or other
transatlantic transportation tickets.
Rank of sector: 6
Name of Sector: Computer and Peripherals
ITA industry code: CPT
Narrative:
The outlook for the Belgian computer hardware market is one of healthy
growth. Belgian companies and government institutions are increasing
investments to automate further their office and workshop environments.
Businesses continue to adopt client/server architectures instead of old
proprietary mainframes - a trend which is expected to continue for some
years. This causes the market for big systems to persist its
uninterrupted down turn. The PC market is growing fast. Some 86,749
PCs were sold during the first quarter of 1995, which represents a 24.8
percent increase compared to the first quarter of 1994 (69,484 units).
Compaq has surpassed IBM (8.5%) as market leader with a 12.7% market
share, followed by Apple (6.5%) , Vobis (4.7%), and HP (4.6%). The
growth in the PC market is mainly due to the flourishing home market.
The best prospect niches in the hardware sector are network hardware,
work stations, datacom equipment, PCs and portables, and optical media.
Data table 1994 1995 1996
A. Total Market Size 1,813 1,858 1,957
B. Total Local Production 225 223 227
C. Total Exports 361 362 363
D. Total Imports 1,949 1,997 2,093
E. Total Imports from U.S 423 436 458
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 7
Name of Sector: Telecommunications Equipment
ITA industry code: TEL
Narrative:
Competition in the telecommunications equipment market is increasing
with as a consequence declining prices and shrinking margins. The
revenues from supplies, installation, and maintenance of customer
premises equipment, including PABXs, faxes, and modems, is still
increasing. These sales amounted to $365 million in 1994, while sales
in 1995 are expected to reach $371 billion, and almost $381 million in
1996. It is anticipated that the hardware supply market to the telecom
operator BELGACOM will decrease in value terms. However, this loss is
expected to be compensated by network infrastructure investments by the
future second GSM-network operator and by the cable operators for the
second voice and multimedia network. Most promising subsectors are:
ISDN terminal equipment, MAN and WAN network equipment, mobile radio
equipment including GSM and DECT, telecommunications transmission
network equipment: SDH and ATM, broadcasting equipment, and voice
processing systems.
Data table 1994 1995 1996
A. Total Market Size 2,612 2,795 2,989
B. Total Local Production 1,352 1,420 1,491
C. Total Exports 823 946 1,088
D. Total Imports 2,083 2,321 2,586
E. Total Imports from U.S 143 159 180
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 8
Name of Sector: Computer Services
ITA industry code: CSV
Narrative:
The Belgian information technology industry continues to reposition
itself. The Belgian computer services sector is confronted with
increasing competition from abroad especially from low cost countries
such as India and South-East Asia, continuing price wars especially in
consultancy and facilities management, and the decline in maintenance
activities of proprietary systems which all have negative percussions on
the sector. Positive signs are the economic recovery, the high demand
for PCs, the expansion of networks, the proliferation of software
packages especially for network environments, and the emergence of out
source. Some 2,000 computer service companies are currently active in
the Belgian market most of them are small to medium-sized companies.
Four out of ten are systems integrators. Systems integration is the
fastest growing segment of the Belgian IT market. Other best prospects
are network management, E-mail services, value-added network services,
management consultancy, development to measure, training, Internet and
on-line services.
Data table 1994 1995 1996
A. Total Sales 1,921 2,132 2,367
B. Sales by Local Firms 1,030 1,135 1,249
C. Exports by Local Firms N/A
D. Sales by Foreign-owned
Firms 891 997 1,117
E. Sales by U.S.-owned
Firms 463 518 530
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 9
Name of Sector: Pollution Control Equipment
ITA industry code: POL
Narrative:
Belgium, as one of the most densely industrialized and populated areas
in the world, is vulnerable to numerous pollution problems. The
chemical industry, with annual sales of $27 billion, is one the
country's mainstays. The Antwerp area is the world's second largest
complex of chemical industries, after Houston. The market for pollution
control equipment is driven both by EU directives, which Belgium is now
actively transposing into its own regulations - and gradually enforcing
by penalties - and by unabated conservationists' pressure. Sixty
percent of Belgian companies are planning environmentally related
investment in equipment of at least $32,000 per company over the next
two years. Best sub-sectors include equipment for filtering and
processing effluent, scrubbers, water and gas analysis instruments,
programmable process controls, sludge treatment technologies, soil
remediation technologies and recycling equipment, especially for used
packaging.
Data table 1994 1995 1996
A. Total Market Size 1,620 1,800 1,998
B. Total Local Production 900 1,000 1,111
C. Total Exports 180 200 222
D. Total Imports 900 1,000 1,111
E. Total Imports from U.S. 90 100 111
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 10
Name of Sector: Printing and Graphic Art Equipment
ITA industry code: PGA
Narrative:
The printing and graphic art equipment is to be divided into the
following two distinct subsectors:
- Electronic publishing equipment, which has been growing extremely
fast in the last years. The United States market share is 60 percent.
Companies with the latest technology will find strong interest.
- "Mechanical" equipment such as presses and bookbinding equipment.
This sector is characterized by an overwhelming presence of German
equipment. The United States only has 2 percent market share and
European competition is extremely strong.
Data table 1994 1995 1996
A. Total Market Size 565 580 593
B. Total Local Production 16 15 14
C. Total Exports 145 150 157
D. Total Imports 694 715 736
E. Total Imports from U.S 208 218 228
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 11
Name of Sector: Plastic Materials and Resins
ITA industry code: PMR
Narrative:
The market improvement, which began in 1994, is expected to continue at
a steady 1.5% to 2% in 1996 and 1997. The increase in demand has,
however, been accompanied by low price levels, as producers seek volume
for an industry which currently has excess capacity. Restructuring and
re-grouping will continue in the industry, which looks to concentrate
production in fewer units in order to achieve cost savings from volume
production and centralized marketing and distribution. The outlook for
the Belgian plastics' industry is good owing to its proximity to
international shipping and distribution locations and the extensive
restructuring, which has already taken place. At the current low dollar
exchange rate, source from the U.S. is expected to increase by about
five percent in 1996-97.
Data table 1994 1995 1996
A. Total Market Size 2,850 2,890 2,930
B. Total Local Production 26,000 26,300 26,825
C. Total Exports 25,380 25,690 26,225
D. Total Imports 2,230 2,280 2,330
E. Total Imports from U.S 160 168 176
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 12
Name of Sector: Textile Fabrics
ITA industry code: TXF
Narrative:
An increase in consumer demand in Belgium is expected to develop for mid
1995. At the same time, an improvement in export markets, especially in
the EU, will favor Belgian upholstered furniture production with a
consequent increase in the demand for furnishing textiles. Improved
consumer spending will also favor home decoration textiles. The U.S. is
an important exporter of furnishing and decorative textiles to Belgium.
The annual Decosit trade show has become the major international
furnishing and decorative textiles event. In cooperation with the U.S.
Department's Office of Textiles and Apparel (OTEXA), the U.S. Embassy
organizes a U.S. pavilion at Decosit. The next event is on September
10-13, 1995. Companies interested in exhibiting should contact OTEXA,
U.S. Department of Commerce, Washington DC 20230; tel: (202) 482-5153;
fax: (202) 482-2859.
Data table 1994 1995 1996
A. Total Market Size 1,980 2,100 2,226
B. Total Local Production 4,300 4,450 4,604
C. Total Exports 3,930 4,150 4,390
D. Total Imports 1,610 1,800 2,012
E. Total Imports from U.S. 83 86 92
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 13
Name of Sector: Laboratory Scientific Instruments
ITA industry code: LAB
Narrative:
All major U.S. and European multinational chemical companies have a
presence in Belgium, either with manufacturing facilities or with
European headquarters. The chemical/pharmaceutical industry plays an
all-important role in Belgium, with annual sales of $27 billion. In
addition to this industry, other users of scientific instruments are
Belgium's seven universities and numerous companies engaged in
biotechnology. Increasing constraints imposed by quality control to
implement ISO 9000 certification, as well as stringent pollution control
regulations are vigorously driving this market. The most promising sub-
sectors are instruments and apparatus for physical or chemical analysis
such as polarimeters, refractometers and spectrometers.
Data table 1994 1995 1996
A. Total Market Size 218 229 240
B. Total Local Production 0 0 0
C. Total Exports 24 25 26
D. Total Imports 242 254 266
E. Total Imports from U.S. 121 127 133
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 14
Name of Sector: Medical Equipment
ITA industry code: MED
Narrative:
Overall, the sophistication and quality of medical services in Belgium
match that of any other country in northern Europe. In addition,
Belgium has a well developed national medical insurance system covering
almost the entire population. Annual payments to providers total nearly
$19 billion.
In 1991, Belgium ranked 13th among the 24 OECD nations in terms of
health care spending as percentage of GDP, and fifth out the then twelve
EU member states.
The tendency is toward ready acceptance of U.S.-sourced equipment,
especially that with FDA approval. Only 15% of local requirements are
manufactured locally. Most promising sub-sectors include electro-
diagnostic apparatus, infant care equipment, intensive care equipment,
all medical systems and equipment facilitating shorter stays in the
hospital, non-invasive techniques reducing the need for surgery, and
advanced medical imagery.
Data table 1994 1995 1996
A. Total Market Size 639 668 704
B. Total Local Production 80 81 82
C. Total Exports 12 13 13.2
D. Total Imports 571 600 629
E. Total Imports from U.S 114 120 126
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 15
Name of Sector: Apparel
ITA industry code: APP
Narrative:
Consumer spending in Belgium is slowly picking up. It is expected that
pent-up demand will boost sales from mid 1995. There is continued
strong market interest for U.S. sporting and leisure apparel, where U.S.
styles are accepted and designer and branded products are less price
sensitive. The main competition comes from manufacturers and designers
in France, Germany and Italy. For budget clothing and mass distribution
items, low cost producers in the Far East, such as China and Indonesia,
and North Africa provide the bulk of imports.
Data table 1994 1995 1996
A. Total Market Size 2,900 3,050 3,200
B. Total Local Production 1,600 1,800 2,061
C. Total Exports 985 1,050 1,114
D. Total Imports 2,285 2,300 2,316
E. Total Imports from U.S. 82 85 89
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 16
Name of Sector: Sporting Goods and Recreational Equipment
ITA industry code: SPT
Narrative:
After a long period of almost stagnation, consumer demand in Belgium
shows signs of picking up in 1995. The effect of pent-up demand should
result in strong growth from 1996. EU producers are still the main
suppliers of sporting goods to Belgium, although Far East producers are
a strong force in markets such as rackets (tennis, badminton, squash
etc.) and bicycles. The U.S. is the market leader in golf, tennis and
basketball equipment. Basketball and American football provide a small,
but steady, market for U.S.-sourced products.
Data table 1994 1995 1996
A. Total Market Size 778 788 804
B. Total Local Production 701 712 728
C. Total Exports 27 30 33
D. Total Imports 104 106 109
E. Total Imports from U.S. 6 8 10
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 17
Name of Sector: Electric Power Systems
ITA industry code: ELS
Narrative:
Sixty percent of Belgium's power requirement is of nuclear origin. Coal
generating plants produce twenty-five percent, and natural gas from
Algeria, the Netherlands and the North Sea, mainly Norway, accounts for
twelve percent. Production increased 2.2% in 1994, in line with the
general improvement in industrial output in Belgium. Continued steady
growth is expected in 1995 and 1996. A program of investment, well
coordinated between the production and distribution companies, provides
for steady modernization and maintenance of the system. With the low
dollar exchange rate, U.S. manufacturers are well placed to share in
this business. However, there is strong competition from manufacturers
in the EU.
Data table 1994 1995 1996
A. Total Market Size 2,908 3,163 3,441
B. Total Local Production 1,835 2,018 2,303
C. Total Exports 150 200 220
D. Total Imports 1,223 1,345 1,358
E. Total Imports from U.S 79 80 82
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 18
Name of Sector: Building products
ITA industry code: BLD
Narrative:
In addition to the softwood plywood, where the U.S. industry supplies
100% of the market ($30 million for the Belgian market, plus $9 million
for re-export), there is also good potential for a limited number of
innovative U.S. building products listed below. Forty thousand new
homes are built annually in Belgium and a multiple of that number is
being remodeled. However, building patterns are very different from
those in the United States in that only ten percent of the Belgian homes
are prefabricated, and that nearly 100 percent all of the homes are
built with brick. In addition, homes are built to last for two or more
generations. For commercial buildings, concrete is preferred over all
other materials. Best sub-sectors include plywood and particle board,
roofing products, building sealants, do-it-yourself building sub-
components and intrusion alarm systems.
Data table 1994 1995 1996
A. Total Market Size 11,954 12,108 12,315
B. Total Local Production 10,395 10,530 10,709
C. Total Exports 1,039 1,053 1,070
D. Total Imports 2,598 2,631 2,670
E. Total Imports from U.S. 60 60 62
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
Rank of sector: 19
Name of Sector: Seafood
ITA industry code: MFI
Narrative:
Per capita consumption of seafood in Belgium reached a high of 20.5
kilos in 1994, a 19% increase since 1985. The traditional fresh fish
business is still strong but there is also a trend evolving towards high
profile, high quality value-added products. Belgium is an excellent
distribution center for much of Europe. Most promising subsectors are
lobster, salmon and frozen value-added seafood.
Data table 1994 1995 1996
A. Total Market Size 622 650 679
B. Total Local Production 41 41 42
C. Total Exports 159 166 174
D. Total Imports 740 775 811
E. Total Imports from U.S 14.2 15 15.8
Exchange Rate: $ = BEF 33.5 31 31
The above statistics are unofficial estimates.
B.) TRADE WITH BELGIUM (AND LUXEMBOURG) IN THE FOLLOWING
AGRICULTURAL SECTORS IS ALSO EXCELLENT FOR U.S. COMPANIES (these sectors
are not ranked in terms of best prospects and the figures provided are
in volume not $ terms):
Data for 1994 and 1995 included in these charts are estimates
Source of trade data: National Institute of Statistics
Exchange Rates: Cy 1993 1$ = BF 34.53
Cy 1994 1$ = BF 33.42
June 1, 1995 1$ = BF 28.87
A. Name of Sector: Wine
1993 1994 1995
In 1,000 liters
B. Total Market Size 192,743 203,237 202,400
C. Total Local Production
1. Belgium 400 400 400
2. Luxembourg 15,000 15,000 15,000
D. Total Exports 13,383 14,000 17,000
E. Total Imports 190,726 201,837 204,000
F. Total Imports from U.S. 765 519 600
NOTES:
C. Belgium and Luxembourg yearly average
COMMENTS:
BLEU (Belgium and Luxembourg Economic Union) per capita consumption of
wine slightly declined. The BLEU wine consumer, however, has shifted to
higher quality wines. Because of growing consumption of quality wines
at home and the fact that Belgium has a substantial number of high-
quality restaurants, we believe that the Belgian wine market has more
potential for U.S. quality wines. In contrast to The Netherlands and
other Northern European countries, in Belgium approximately 30 percent
of all wine sales come from the on-trade segment of the wine market,
i.e. hotels, restaurants and bars. Time and persistence will be
necessary to progress in this market. A long-range marketing program
for Belgium and Luxembourg is a must to develop quality awareness of
U.S. wines of Belgian and Luxembourg consumers. The best way for the
U.S. wine industry to counter the tough competition in this market is to
continue to participate in wine fairs and tastings, to work directly
with importers, to advertise in publications and to put promotional
funding into information for restaurant owners, as well as hotel and
restaurant schools and wine clubs.
A. Name of Sector: Nuts
1993 1994 1995
In MT
B. Total Market Size 23,924 24,398 24,500
C. Total Local Production 500 500 500
D. Total Exports 2,930 3,479 3,500
E. Total Imports 26,354 27,377 27,500
F. Total Imports from U.S. 1,216 1,464 1,500
NOTES:
F. Mainly almonds and walnuts
COMMENTS:
Compared to other EU countries, i.e. Germany and The Netherlands,
Belgium has a minor per capita consumption of nuts in general. However,
for the last five years the nut consumption has been growing
continuously and Belgium still has a high potential for
imports/consumption of nuts. The major part of imported nuts goes to
wholesalers and retailers of ethnic groups in Belgium. Nevertheless,
distribution of nuts through supermarkets has expanded considerably
during the last five years. Many nuts are imported in "bulk and natural
(in-shell)" or "grilled and salted" by EU buyers and distributors. The
quality/price relationship, however, also appears to be an important
factor. Belgium also has a wide-range of domestic food processing firms
(bakery products, confectionery, ice cream etc.) which use nuts.
A. Name of Sector: Citrus Fruits
1993 1994 1995
In MT
B. Total Market Size 201,780 205,150 207,000
C. Total Local Production 0 0 0
D. Total Exports 52,873 53,384 54,000
E. Total Imports 254,653 258,534 261,000
F. Total Imports from U.S. 6,823 10,355 11,000
NOTES:
F. Mainly grapefruits
COMMENTS:
Average per capita consumption of citrus fruits in Belgium and
Luxembourg steadily increased over the last decade. Belgians spent
approximately 15 percent of total disposable budget for fruits on citrus
fruits. Total imports from the U.S. substantially increased in 1994 and
we anticipate that imports from the U.S. will continue to expand.
Belgium is home to one of the largest ports in the world, Antwerp. The
infrastructure of the port of Antwerp is quite extensive and of a very
high quality, with established warehouses per specific commodity.
Additionally, Belgium has a mega European distribution center for fruits
in the Brussels area, servicing not only Belgium but also its
neighboring countries. Although U.S. exporters face tough competition
from EU supplier Spain, as well as from Israel, Cyprus, Morocco and
South Africa, there continues to be potential for high quality and good
quality/price-related citrus fruits.
A. Name of Sector: Miscellaneous Food Preparations
1993 1994 1995
- In MT -
B. Total Market Size 309,130 315,000 315,000
C. Total Local Production 532,067 540,000 540,000
D. Total Exports 944,039 950,000 950,000
E. Total Imports 721,102 725,000 725,000
F. Total Imports from U.S. 10,097 11,000 11,000
NOTES:
B. Market size is derived from partial production volume and trade
data.
C. Data is partial production volume only, mainly canned food products
and specialty food products. Production figures of some food processing
industries are confidential and therefore unavailable.
COMMENTS:
We anticipate an increase in consumption of prepared food products in
response to the needs of the growing number of microwave users, one-
person households and working women. A growing awareness of high-
quality U.S. processed food products as well as a continued low dollar
exchange value are valuable assets to further explore opportunities for
"new" products. We have noted that newly-established companies have had
a particular interest in "niche market" products. Advantages that U.S.
companies may have are in their product uniqueness, high quality,
competitive prices and continuity in supply. U.S. suppliers looking for
new export markets should be prepared to invest in research that will
determine the market access potential of their product. A vehicle for
developing contacts of "niche market" products could be the trade lead
services provided by FA/ABC, and the Regional Export Organizations. For
the whole range of packaged food items, the best two vehicles for
promotion in Belgium are the ANUGA and SIAL fairs taking place elsewhere
in Europe.
A. Name of Sector: Juices
1993 1994 1995
In MT
B. Total Market Size 87,932 90,000 92,000
C. Total Local Production 66,000 68,000 70,000
D. Total Exports 126,325 130,000 130,000
Of which citrus juices 83,044 85,000 85,000
E. Total Imports 148,257 152,000 152,000
Of which citrus juices 91,206 93,000 93,000
F. Total Imports from U.S 6,327 7,000 7,000
Of which citrus juices 5,695 6,000 6,000
NOTES:
B. Market size is derived from trade data and estimated
production figures.
C. Official production figures are unavailable; these figures have
therefore been calculated by the office of Agricultural Affairs based on
the average per capita consumption of all juices.
COMMENTS:
Belgium has a number of major importers/processors/exporters of fruit
juices. A substantial volume of juice is imported as concentrate and/or
in bulk, processed and packed for retail sales. Per capita consumption
of juices in Belgium and Luxembourg, especially citrus fruits, has grown
to approximately 8.50 liters, compared to 5.50 liters in 1986. Of
total juices consumed, almost 90 percent is of citrus fruits. The best
potential for U.S. citrus juices is through integrated and associated
distribution channels.
A. Name of Sector: Forest and Wood Products
1993 1994 1995
- in thousand MT -
B. Total Market Size 4,545 4,350 4,350
C. Total Local Production 3,255 3,350 3,400
D. Total Exports 2,944 3,000 3,050
E. Total Imports 4,234 4,000 4,000
F. Total Imports from U.S. 138 135 135
NOTES:
C. Estimate
COMMENTS:
Although the Belgian wood processing industry contracted during the last
two years, it remains an important sector that employs approximately
28,000 workers in a little over 2,000 enterprises. 1,500 of these
enterprises are furniture manufacturers. Total production value of the
industry reached BF 134.7 billion in 1993. The furniture industry
accounted for BF 78.4 billion. 1993 total domestic consumption in the
overall wood processing industry reached BF 70 billion. FA activities
and U.S. trade contacts with major Belgian importers of forest products
aim to help increase Belgian awareness of the U.S. forest products
available for export. The international wood importing trade is
presently searching for alternatives in replacement of tropical
hardwoods, and Belgian importers say that they are increasingly
contacted by end-users for advice on finding replacement hardwoods.
Major importers anticipate that this is an excellent opportunity for
"new" U.S. hardwoods to find in-roads into the Belgian market.
A. Name of sector: Grains and grain preparations
1993 1994 1995
In 1,000 MT grain
B. Total Market Size 4,271 4,253 4,300
C. Total local production 2,263 2,218 2,300
D. Total Exports 3,820 3,915 3,950
E. Total Imports 5,828 5,950 5,950
F. Total Imports from U.S. 69 86 90
NOTES AND COMMENTS:
B. Animal production in Belgium and Luxembourg represents around
two-thirds of total agricultural production value, and the animal feed
sector is a very large consumer of grain. Grain demand is roughly
divided between the animal feed sector (around 40 percent), the
industrial sector (around 30 percent), the food sector (around 25
percent), and others (seeds, losses, etc.). The largest industrial
users of grain are the starch industry (wheat and corn) and the malt
industry (barley).
C. Two-thirds of local production of grain consist of wheat.
Because domestic wheat production cannot always meet the high quality
requirements of the food sector, imports are a necessity.
D. Belgium's two main ports, Antwerp and Ghent, play an important
role in the grain trade in Western Europe. Not only do large volumes of
grain transit the country, but also exports of domestic grain
preparations such as malt, wheat flour, bakery products and pasta
products are considerable.
E. At present, exports from the U.S. consist mainly of wheat (26,000
MT in 1994) and rice (more than 50,000 tons). The U.S. market share in
the sector of grain based products is negligible. The Belgian consumer
is, however, known to enjoy high-quality foods. With a carefully chosen
marketing strategy, there would certainly be opportunities to introduce
more U.S. grain products on the Belgian market. Some examples of
markets with potential are: pasta products, biscuits and corn products.
On the raw material side, opportunities lie in the area of durum wheat
(where market share has been lost to Canada), bread wheat, rice and
corn.
A. Name of sector: Oilseeds
1993 1994 1995
In 1,000 MT
B. Total Market Size 2,120 2,369 2,249
C. Total local production 28 51 48
D. Total Exports 36 39 44
E. Total Imports 2,128 2,357 2,245
F. Total Imports from U.S. 545 652 652
NOTES AND COMMENTS:
B. Demand for oilseeds in Belgium is determined primarily by the raw
material requirements of the oilseed crushing industry, which imports
(in decreasing order of importance) soybeans, rapeseed and
sunflowerseed. There are two large crushing companies in Belgium that
are supplying both the domestic and the export markets with oilmeals for
the animal feed sector, as well as vegetable oils for food and
industrial use.
E. Imports of oilseeds from the U.S. consist mainly of soybeans.
During recent years, soybean imports from the U.S. have declined, with
market share lost mainly to South American exporters. Also in the area
of oilseed products, i.e. oilmeals and vegetable oils, South American
imports have increased their market share. Until now, sales of U.S.
oilmeals to the Belgian market have been negligible. In the sector of
vegetable oils, sales have also remained limited to negligible
quantities of sunflowerseed oil, peanut oil and fish oil. The Belgian
demand for vegetable oils in the food sector is rather saturated. An
important part of the forecasted demand increase in the short term will
therefore be in the industrial segment. Some industrial products which
use vegetable oils are: soaps and detergents, printing ink, lubricants,
paints, pharmaceutical products, skin care products and plastics. The
present climate of environmentalism and changing dietary habits offers
an excellent opportunity for the U.S. to increase vegetable oil sales to
both the food and industrial sector in Belgium. The American Soybean
Association effectively promotes the use of U.S. soybean products in the
Belgian market.
C.) INVESTMENT AREAS OF OPPORTUNITY FOR AMERICAN FIRMS IN BELGIUM
INCLUDE THE FOLLOWING:
1. Partial privatization of Belgacom (the state telecommunications
company), worth at least $1 billion.
2. Possible further privatization of the Zaventem international airport
operation.
3. Location of a European-wide distribution center in Belgium.
4. Location of a European-wide coordination center in Belgium.
5. Development of a strategic alliance with a Belgian firm in one of
the following sectors: communications, biotechnology, the environment,
energy, chemicals, and electronics. Such a venture could be targeted at
Western Europe, Eastern Europe, or the Middle East.
6. Competition for a second cellular license in Belgium due by year's
end and worth at least $120 million.
7. The Hermes project to use railroad rights-of-way to create a second
European telephone trunk line, worth $750 million.
8. The Brussels Regional Government soon will call for a tender to
design the Brussels North sewage treatment plant with a capacity to
treat the effluent from 1.1 million inhabitants. This $300 million
plant will treat household waste water and a minimal amount of
industrial waste water.
The Government of the United States acknowledges the contribution that
outward foreign direct investment makes to the U.S. economy. U.S.
foreign direct investment is increasingly viewed as a complement or even
a necessary component of trade. For example, roughly 60 percent of U.S.
exports are sold by American firms that have operations abroad.
Recognizing the benefits that U.S. outward investment brings to the U.S.
economy, the Government of the United States undertakes initiatives,
such as Overseas Private Investment Corporation (OPIC) programs,
investment treaty negotiations and business facilitation programs, that
support U.S. investors.
VI. TRADE REGULATIONS AND STANDARDS
A. INTRODUCTION:
Effects of the Single Market:
To begin with, Belgium is part of the EU's single market of some 370
million consumers. Thus, there are many common product standards either
in place or in the process of being put in place, and U.S. companies can
eventually meet one product standard rather than fifteen different ones.
There is a single duty among all EU members toward products coming from
non-EU members. VAT rates are being harmonized among the fifteen
members and as of January 1, 1993, the EU in theory became borderless
for the movement of goods. U.S. companies can thus structure
advertising and marketing campaigns which are pan-European. U.S.
companies can also look at distribution to all fifteen EU members from
one location. American firms must meet the common standards now being
developed, and they should consider obtaining ISO 9000 quality
certification if they are a manufacturer. Quality, service and price
competitiveness will remain paramount considerations for a European
considering buying an American product or service. Because of
competition from all over Europe, a U.S. firm will want to offer an
agent or a distributor credit terms as good as its European competitors
- of course after being fully satisfied with the creditworthiness of the
buyer. Lastly, an American firm will have to follow EU directives on
such important issues as product safety and recycling excess packaging.
These directives will apply across the board in all member states.
Nonetheless, there still are and will remain fifteen different markets,
and U.S. companies should continue to approach each one somewhat
separately. For example, the single market will not eliminate regional
language and cultural differences. It will not eliminate differences in
consumer buying patterns. Regional economic differences will remain.
There will be few distributors anywhere in Europe who can effectively
distribute a product or service in all fifteen member states, and there
will remain legalistic differences in the treatment of agents and
distributors. What do these differences mean for U.S. companies?
They mean that an American firm must continue to have a number of
distributors in Europe, especially in the most important markets. They
also mean that a company must obtain sound legal advice in each country
and market its product or service in a way sensitive to the cultural and
social history of the country in which it operates. They also mean that
pan-European advertising and marketing are no panacea for individual
country marketing. Companies will have to experiment and see if such
pan- European marketing really works for their product line or service.
Thus, whether we see a single market fully born in 1996 or 2000, U.S.
companies can take advantage of much of the single market now in place,
keeping in mind that they must still treat each country's market
differently. American companies can look at the next ten years as a
window of opportunity for becoming and remaining competitive in the
single market of the future. By beginning the process now, U.S. firms
can meet the challenges of intense competition in the European
marketplace.
Customs Valuation:
As a member of the European Union, Belgium applies the EU common
external tariff to goods imported from non-EU countries. For goods
imported into Belgium from other EU countries, no customs duties apply
unless the goods contain components imported from outside the EU upon
which customs duties have not been paid in another EU country.
The EU is currently considering a change in its method of calculating
customs values of imported goods. Current EU customs valuation rules
provide that, where there is a "chain of sales" leading to the
importation of goods into the EU, the price paid in any of these sales
can be used as the basis for establishing the customs value of the goods
in questions. The proposal under discussion would require that the
customs value be based on the final sale price only. If adopted, many
U.S. multinationals exporting to the EU through a "chain of sales" would
find that EU customs officials assign their products a higher customs
value, and thus levy higher tariffs, than is now the case. U.S.
companies should follow this development carefully through their customs
broker since its implementation would necessitate considerable
adjustments in operations for major U.S. exporters to Europe.
Import and Export Licenses and Quotas:
Many products may be imported or exported without any prior license, but
products from certain countries and certain listed products are subject
to an import license. An application for such a license must be made to
the Office of Quotas and Licenses (OCCL/CDCV). Strategic goods are also
subject to an import and/or quota license. A list of products subject
to quotas or licenses can be obtained from the office of the OCCL/CDCV
or by contacting a Belgian customs broker directly or via an American
broker.
Office of Quotas and Licenses (OCCL/CDCV)
Rue De Mot 24/26
1040 Brussels, Belgium
Tel: 32/2/233-6111
Fax: 32/2/230-8322
Mr. van Helleputte, Director General
Value Added Tax:
Goods imported into Belgium or made in Belgium are normally subject to a
Value Added Tax payable upon importation if Belgium is the destination
of the goods being shipped into the EU. One of three rates will apply:
6% daily necessities, food stuffs, etc;
12% tobacco, fuel, etc.; and
20.5% majority of commercial items.
While VAT applies equally to domestically-produced goods, it is applied
after all customs duties are added to the price of the goods. Since EU
products do not pay customs duties, while those from the U.S. do, the
effective VAT rate for non-EU goods is actually higher than the rates
cited above.
Bonded Warehouses:
While Belgium does not allow free trade zones, it does permit bonded
warehouses near the main port of Antwerp and the national airport north
of Brussels. In addition, it is possible to create a private warehouse
with the authorization of the customs authorities, which allows the U.S.
firm to delay and even avoid payment of customs duties. Goods can
remain in such warehouses for up to one year, with duties and VAT
payable only upon sale within Belgium or reexport to other countries
within the EU. A bank guarantee and certain reporting requirements are
necessary to operate such a facility, and there are other stipulations
governing such a warehouse.
B. DOCUMENTATION REQUIRED FOR U.S. EXPORTS TO BELGIUM:
Begin Summary:
European Community Ministers agreed in 1991 to abolish virtually all
customs documentation on goods moving between EU countries by January 1,
1993. However, countries outside the EU are still required to obtain
proper customs documentation. The following is a summary of the
documentation needed for U.S. exporters of goods to Belgium. However,
such information can change overnight. U.S. exporters should always
consult a reputable freight forwarded regarding recent changes in
customs documentation and import/export regulations. End summary.
Shipping Documents:
Following are the documentary requirements American exporters must meet
when shipping to Belgium: Mail and parcel post shipments require postal
documentation in place of bills of lading. Air cargo shipments require
airway bills (in place of bills of lading) with the number of copies
issued based on requirements of the importer and the airline used.
Follow IATA and/or ICAO (plus all other applicable national and/or
international) regulations governing labeling and packing of dangerous
and restricted goods as well as issuance of the special shipper's
certificate required under IATA rules for such items (airlines will
supply this form). ICAO rules may also require documents covering such
shipments (airlines will supply information and forms if so required).
U.S. exporters must also follow U.S. government requirements regarding
export control documents, including the shipper's export declaration.
Consular/Customs Invoice:
Neither document is required in Belgium.
Commercial Invoice:
The commercial invoice (in triplicate) without requirement as to form,
must contain full particulars, e.g., such as the following: date; place
of shipment; name/firm's name and address of seller and buyer; mode of
transport; number, kind, and markings of the packages and their
numerical order; exact description of goods - a customary commercial
description according to kind, quality, grade, weight (both gross and
net, in metric units), etc., with special emphasis to be placed on any
factors which increase or decrease the value of the goods; agreed price
of goods - unit cost, total cost F.O.B. factory plus shipping, insurance
and other charges; delivery and payment terms; country of origin of
goods; and the signature of the exporting firm. It is useful if the
commercial invoice contains the HTS code (Harmonized Tariff Schedule).
This is not mandatory, but helps the importer to recognize the commodity
and properly classify it for customs purposes. The first four digits of
the eight digit code are harmonized worldwide. Additional information
may be requested by the importer, under terms of a letter of credit, or
due to the nature of a particular trade.
Pro-Forma Invoice:
A pro-forma invoice is acceptable in lieu of a commercial invoice. It
should include a complete description and value of the goods shipped.
It is mostly used in cases where no actual invoicing between the shipper
and the consignee exists.
Bills of Lading:
Generally, "To order" bills are acceptable. Bills of lading should bear
the name of the party to be notified. The consignee needs the original
bill of lading to take possession of the goods. Express bills of lading
are also acceptable. These B/L's help speed up the process in cases
where banking is not necessary. With an express bill of lading, goods
are automatically transferred to the designated consignee without
presentation of the original B/L. This is ideal for internal company
shipments of goods sold on open account.
Packing List:
This is not a mandatory document. However, including a packing list
should facilitate customs clearance of goods.
Certificate of Origin:
No certificate of origin is, as a general rule, required under Belgian
regulations on imports from the U.S. except when the certificate is
specifically demanded in the import license. Sometimes certificates of
origin are requested by the importer/bank/letter of credit clause.
There are no regulations concerning the form and preparation of the
certificate, when necessary, but the data contained in it has to be
certified by a Chamber of Commerce (which will probably require an
additional notarized file copy). Under EU regulations, certificates of
origin may be required for stipulated goods, including goods subject to
surveillance and/or quota requirements. Goods covered by either of the
systems usually require certificates of origin irrespective of the
actual origin of the goods. Importers will instruct their suppliers
when certificates of origin are to be issued in such circumstances.
Insurance Certificate:
Normal commercial practices obtain. Follow the instructions of the
importer and the insurance company.
Steamship Company Certificate:
There are no known requirements.
Import License:
The vast majority of goods from the U.S. do not require an import
license (as long as the importer is Belgium).
U.S. Shippers Export Declaration:
This is required if the value of the shipment is more than dols 2500
(dols 500 for shipments through the U.S. postal service) or where a
validated license is needed. The dols 2,500 exemption (dols 500 for
shipments through the U.S. postal service) applies to goods under each
schedule B number in a single shipment from one exporter to one
importer.
Consular Fees:
There is no known general requirement to have documents legalized. If
requested to legalize a shipping or legal document, Belgian officials
will usually do so at no cost or for a nominal sum. Please verify the
policy of the consular office used regarding this matter.
Belgian Export Controls:
Belgian controls apply to the export and reexport of military
(conventional weapons) and dual-use items, as well as materials for
weapons of mass destruction. Belgian companies send all applications
for export and reexport to the Office of Quotas and Licenses in the
Ministry of Economic Affairs. At that point, the process varies
depending on whether the export is a conventional weapon/dual use item
or a nuclear-related item.
If the item is a conventional weapon or dual use item, the Office of
Quotas and Licenses will first determine whether, based on law and its
experience, it will approve the item for export. If the Office makes a
positive determination, it then sends the request for further approval
to one of two federal ministers depending on the location of the Belgian
company involved in the export. Export licenses for Flemish companies
are sent for approval to Foreign Minister, Willy Claes, while Walloon
company export licenses are sent for approval to Minister of Foreign
Trade, Robert Urbain. Once approved or disapproved by the respective
ministry, the applications are returned to the Office for final
disposition.
If the item is nuclear or nuclear-related, the application must be
approved (or disapproved) by the Minister of Economic Affairs, after
consultation with and advice from the National NonProliferation Board.
The Board consists of representatives of five federal ministries,
including Trade, Foreign Affairs, Health, Energy, and Economic Affairs.
As a member of the European Union and Cocom, Belgium follows the common
regime and applies the proscribed lists. As the Cocom regime is
replaced and new lists developed, both by Cocom's successor and the EU,
Belgium will utilize those lists to apply the export control procedures
outlined above.
Comment:
There are likely to be new customs regulations and policies of the EU
which will come into effect as a result of the Maastricht Treaty,
implementation of a common EU export control regime, and implementation
by Belgium of the so-called ecotaxes. American exporters should always
consult a reputable freight forwarder who will be knowledgeable of
recent changes in documentation requirements.
C. PACKAGING AND LABELING IN BELGIUM:
Summary:
Until recently, each EU country individually regulated its domestic
industries for packaging and labeling. As part of the EU's 1992 single
internal market program, the EU is now attempting to remove technical
barriers by harmonizing existing European legislation and establishing
new rules, where necessary, so that goods sold in one EU country can be
marketed easily in any other EU country. However, differences still
exist from country to country. In addition, national requirements exist
side by side with EU-wide requirements. Following is a review of
packaging and labeling regulations in Belgium affecting U.S. exporters.
The review covers both national and EU-wide aspects of packaging and
labeling in Belgium. End summary
What Language to Use:
Probably the most often asked question regarding packaging and labeling
in Belgium is, "what language am I required to use?" Belgium recognizes
three official languages: Flemish (Dutch), French, and German. The
prevailing Belgian law is simply that the consumers of the targeted
market must be able to read the product information. Typically, this
has been Dutch (Flemish) in the northern half of Belgium (Flanders),
French in the southern half of Belgium (Wallonia), and German in two
small communities of German speaking Belgians on the Belgian border with
Germany. Generally, both Flemish and French appear on all products sold
in the Belgian market and should be considered the most judicious option
for a newcomer to the Belgian market. The language requirement is
enforced rather liberally. According to the director of the Belgian
Packing Institute, a judge in the Flemish city of Mechelen ruled in
favor of a German company which refused to label its product in Flemish
as he deemed the local populace to be well versed in the understanding
of German.
Marking and Other Requirements:
With only minor exceptions, there are no general requirements for
marking imported goods with the country of origin. Requirements for
specific products should be obtained from the importer. Imports of
certain commodities, including numerous food stuffs, are subject to
special regulations regarding the manner in which they must, be labeled
to show manufacturer, composition, content (in metric units), and
country of origin. These special regulations relate largely to health
and quality standards, are highly detailed and diverse, and are embodied
in formal legislation and directives of Belgium. In view of the
complexity of this field, information should be requested from the
importer prior to shipment.
Belgium's Ecotaxes:
Harmonizing a company's packaging to conform with Belgian environmental
law is another very important consideration. The Belgian government has
recently brought into law a set of "ecotaxes." These taxes are new
measures that the "greens" have proposed to protect the environment.
These taxes affect several types of disposable products, as well as
certain chemical and industrial products. As proposed, the law was to
have come into effect after the first of January, 1994 for many products
and then at various times over the next four years for the remaining
products. However, the government has delayed the implementation of
various parts of the law. While this gives U.S. exporters additional
time to meet the requirements of the ecotaxes, it only postpones the
requirement in most cases to the beginning of 1996.
The proposed ecotaxes are a set of variable rate taxes levied upon
products such as disposable drink containers, disposable razors,
disposable cameras, disposable batteries, industrial containers,
pesticides, and herbicides. The taxes are levied on products put into
consumption in proportion to the damage they are deemed to cause the
environment. The national government is responsible for collecting the
taxes, but will not benefit from the revenues. These revenues will be
divided among the regional governments in proportion to their respective
populations. This money is intended to help finance environmental
programs which the regions are taking over from the national government.
Specifically, bottles and cans of beer, sparkling water, mineral water,
lemonades, non-alcoholic drinks, and colas are among the first to be
affected by the taxes. According to the law, reusable and deposit
bottles, and non-reusable and recyclable containers will be subject to a
15 BF/liter tax (0.52 Dollars/liter) with a 7 BF minimum per packing
(0.24 Dollars/minimum) if the container is at least 50 centiliters.
Containers less than 50 centiliters are subject to a 3.5 BF (0.12
Dollars) tax. PVC (polyvinyl-chloride containers) will be affected at
the same rates at a date still to be determined by the Advisory
Committee on the ecotaxes. Recyclable and reusable containers are
exempt from the tax if 80 percent of the glass, aluminum, and tinplate
and 70 percent of the plastic is collected and recycled at the expense
of the suppliers. Reuse is defined as being refilled at least seven
times and the packing must be designed to be used again and again.
Containers for other drinks, such as wines, non-alcoholic wines, fruit
juices, vegetable juices, alcoholic drinks, milk, and dairy products
will be subject to the same rates effective December 31, 1997 at the
latest. Items on the deposit-return system should bear a clearly
visible mark indicating that a deposit will be required. The conditions
for this mark will be determined by royal decree. The effective date
for the initial application of the ecotax on bottles and cans was to
have been December 31, 1994, delayed to June 1, 1995, and now delayed
until the government elected in May 1995 has had time to evaluate the
economic impact of such taxes, probably by the end of 1995. The
effective date is currently January 1, 1996.
An ecotax of 10 BF per disposable razor took effect on January 31, 1994.
A tax of 300 BF on throw-away cameras took effect on July 1, 1994. A 20
BF tax on throw away batteries or a deposit of 10 BF per battery will
take effect on a date still to be established by the Advisory Committee.
Like the ecotax on bottles, this tax has been delayed twice with the
implementation date now being January 1, 1996. The Advisory Committee
is also charged with setting the dates of implementation of ecotaxes on
glues, pesticides, paper, and solvents. This was to have been done by
December 31, 1994, but has also been referred to the new government
which took power in May 1995. Pesticides will be exempt from the taxes
provided that no substitute exists which is more ecologically friendly.
Ecotaxes on packaging materials were scheduled to take effect March 1,
1995, though they too are now subject to review by the Advisory
Committee which has yet to render a decision. Lastly, certain papers
and cartons are to be subject to ecotaxes on January 1, 1996. The
Advisory Committee is continuing to debate whether it is scientifically
possible to determine the recycled fiber and chlorine content of such
materials in order to properly apply the taxes.
Industry is continuing to lobby against the taxes for several reasons.
Although the main associations representing affected industries claim
not to disagree with the primary objectives of the green parties, they
do claim that the ecotaxes, in their current form, are discriminatory to
certain industries which are relatively minor contributors to overall
environmental problems. Industry also believes that there could be
significant economic fallout due to the severity of the taxes in a few
areas. Estimates of the economic costs of the implementation of the
ecotaxes are mostly regarded as conjecture at this point, with the
greens convinced that new industries, such as recycling, will spring up
and compensate for job loss elsewhere. Industry has argued that
voluntary systems based on deposits are preferable to taxation. In
response to industry complaints, especially from the chemical (PVC)
industry, the government established the Advisory Committee to examine
the potential impact of the ecotaxes on inflation, domestic markets, and
unemployment in Belgium. Based on this Committee's recommendations, due
now by the end of 1995, the ecotax law and its components will likely be
amended further.
In any event, U.S. exporters should consult regularly with their Belgian
importers, agents, and distributors for details of the taxes and their
effects on the cost of certain imported products, as well as the
timetable for implementation of the taxes.
European Union requirements:
Incorporated into the charter of the European Union is a law modeled on
the U.S. counterpart. Basically, any specific legislation not ratified
by the EU will be left to the member countries to implement as they see
fit. While recent EU legislation does not conflict with what is being
brought into law in Belgium, it is important to be aware of impending EU
regulations as they may override local Belgian laws.
Recycling, packaging and waste management:
An EU proposal, which recently published in the Official Journal (c 263;
Oct. 12, 1992) and adopted in early 1995, has two objectives: first, to
harmonize European packaging standards and symbols to facilitate the
free flow of goods within the community and second, to maximize the
environmental benefits of various national waste management systems, by
increasing the level of coordination among them. To attain these
objectives, the Directive establishes:
- recovery and recycling targets;
- requirements and conformity symbols for packaging; and
- broad criteria for national waste management systems.
The Directive is based on a prevention-first, recovery-second, and
disposal-last approach. It mandates that, within 5 years after the
passage of the directive, the EU member states must recover (defined to
include recycling, composting, and waste-to energy recovery) a minimum
of 50% by weight of all packaging waste, with at least 25% recycled.
More important, the Directive sets maximum targets for recovery of 65%
and 45% for recycling.
While U.S. exporters need not be concerned with the technicalities of
the disposal methods, it is important that their products are not biased
unfavorably by the legislation. The EU Directive specifies that, "these
systems shall ensure the coverage of imported products under non-
discriminatory conditions and shall be designed in such a way that there
are no barriers to trade or distortion of competition." Regarding the
obligation to take the packaging back, the EU Directive puts the onus on
the waste management system, not specifically on manufacturers as is
currently the case in Germany. In that respect, the U.S. Commerce
Department has been assured repeatedly by EU officials that U.S.
exporters would not be required to take the packaging waste back to the
United States. This would be consistent with the EU's "proximity
principle."
Electronic Waste:
The European Union is in the very preliminary stages of considering
whether to draft legislation in the field of electronic waste. As with
waste legislation in other areas, notably packaging, the impetus for the
commission's initiative has come from existing or proposed, member state
legislation. It appears that this will again be true in the electronic
waste sector.
Eco-Labels:
The Commission of the European Union has published the first ecological
criteria for the award of the eco-label for washing machines,
dishwashers, paper towels, toilet paper and soil improvers, as well as
other materials designed to help applicants. The eco-label scheme,
which is voluntary, will apply to all products except food, drink and
pharmaceuticals. Council regulation no. 880/92 on a community eco-label
award scheme provides for the establishment of ecological criteria for
specific product groups to enable verification of the reduced
environmental impact of qualifying products, based on analysis of the
life cycle for the product, from manufacturing (including choice of raw
materials) through distribution, consumption and use, to disposal after
use. The regulations require member states to designate competent
bodies to assess applications for the eco-label based on these criteria.
Manufacturers or importers in the community may apply for an eco-label
only to the competent body or bodies designated by the member state in
which the product is manufactured or first marketed, or into which the
product is imported from outside the EU. At an unspecified date in the
future, markings will have to be displayed to indicate the reusability
or recyclability of the package, while voluntary markings could be used
by manufacturers to indicate the nature and the percentage of recycled
material of the packaging. While voluntary, eco-labels may become
important marketing tools to consumers as well as a de minimis
requirement demanded by EU importers and end users, including consumers,
of American products. Products, which may benefit from the eco-label,
include textiles, detergents, dishwashing agents, cleaning agents,
paints and varnishes, batteries, shampoos, packaging, refrigerators and
freezers, tiles, shoes, cat litter, light bulbs and hairsprays.
The CE mark in the European Union:
It is important to note here that products complying with EU
harmonization directives will be required to affix a CE mark to the
product (or its packaging, under certain circumstances) to signify that
the product complies with all relevant EU legal requirements specified
in the directives. The CE mark signifies to member state customs and
enforcement officials that the product complies with EU legal
requirements. CE marking is currently mandatory for the following
product categories in the EU: toys, telecommunications terminal
equipment, construction machinery and simple pressure vessels as
European standards and approval bodies have been designated for these
sectors. Products bearing the CE mark are guaranteed free circulation
within the EU market. CE marking does not necessarily eliminate the
commercial need for a manufacturer to obtain other marks for his
product, which may be recognized or expected by purchaser. These
include performance marks, product or process quality marks, and marks
indicating environmental friendliness or recyclability. The need for
additional marks may be specified by a buyer in a contract, or may
simply be a generally accepted marketing practice in a particular
country or region.
Contact Information:
For more information on Belgian and EU-wide packaging and labeling laws,
following are key contacts in the United States and Belgium:
In the United States:
a. Office of European Community Affairs
U.S. Dept. of Commerce
Kirsten Bergstrom or Lori Cooper
Tel: (202) 482-5276
Fax: (202) 482-5270
b. National Institute of Standards and Certification
Joanne Overman or Maureen Breitenberg
Tel: (301) 975-4040
Fax: (301) 975-2128
c. U.S. Trade Representative for Europe and the Mediterranean
USTR
Chris Marcich
Tel: (202) 395-3020
Fax: (202) 395-3911
d. Director, Technical Trade Barriers
USTR
Suzanne Troje
Tel: (202) 395-3063
Fax: (202) 395-3911
e. Office of Belgium
U.S. Dept. of Commerce
Elena Mikalis
Tel: (202) 482-6008
Fax: (202) 482-2897
In Belgium:
f. Commercial Section
U.S. Embassy
Terrance Flannery
Tel: (322) 508-2425
Fax: (322) 512-6653
g. U.S. Mission to the EU
Peggy Keshishian
Tel: (322) 508-2755
Fax: (322) 513-1228
D. STANDARDS IN BELGIUM AND THE EU:
The Importance of ISO 9000 in Selling to Europe:
Simply put, ISO 9000 (EN 29000 in Europe; ANSI/ASQC Q 90 System in the
U.S.) defines the basics of a quality system for manufacturing,
including documentation, controls, and worker training. Its aim is to
ensure that a manufacturer's product is the same no matter when a sample
is taken off the production line. In other words, ISO 9000 is designed
to ensure a consistent level of product quality. ISO 9000 standards are
unlike engineering standards, which contain units of measurement, test
methods, and specifications. Rather, ISO 9000 standards encompass
certain generic management practices designed to bring benefit to both
producer and end user.
In today's marketplace, quality is a competitive advantage. According
to 1993 statistics, some 50,000 EU companies now have some form of ISO
9000 registration. While voluntary, European manufacturers are
increasingly requesting that their suppliers be ISO 9000 registered. In
addition, more and more European importers are making the same request
of their European and American suppliers. The ISO 9000 registration and
process are not cheap and market demand for registration varies across
product and service sectors. ISO 9000 registration also does not
guarantee quality since it is more concerned with consistency than
actual product quality. It also does not ensure that a U.S. product
will meet various standards incorporated into EU directives covering a
host of products. Nonetheless, like the eco-label, ISO 9000
registration may become a de minimis requirement to do business in the
Europe of the year 2000.
Product and Technical Standards:
As alluded to in the foregoing section, there are a number of EU-wide
and member-state standards governing various product categories, as well
as standards in health and safety which cut across a number of product
categories. It would take a small book to describe all of these
standards. When considering the Belgian and broader European market, a
U.S. company needs to ask what, if any, mandatory product standards
apply to its products or services. An importer is probably the best
source for this information, at least in the initial inquiry stages.
The U.S. Mission to the EU can also help at the following contact point:
U.S. Mission to the EU
Peggy Keshishian
Tel: (322) 508-2425
Fax: (322) 513-1228
In Belgium, information on product standards can be obtained from:
Mr. P. Croon
Director
Belgian Standards Institute
Avenue de la Brabançonne 29
1040 Brussels
Tel: 32/2/734-9205
Fax: 32/2/733-4264
E. TRADE BARRIERS:
Belgium maintains an excellent and open trading climate for U.S.
companies, with government leaders, overall, at all levels very
supportive of free trade. That does not, however, always translate into
a commercial environment easy for U.S. companies to understand or
operate in, and American companies do sometimes encounter trade
problems. Those problems often result from the Belgian penchant to
compromise and avoid confrontation. They also sometimes result from the
unclear division of responsibilities among local, regional, and federal
authorities. This lack of clear responsibility can lead to bureaucratic
delays and inaction. It can also lead to inconsistent legislation and
implementation.
Major trade barriers
1) Government procurement of goods and services
The EU has adopted several directives covering public supplies and
public works, as well as the sectors of energy, water,
telecommunications, and transport (the so-called "utilities" or
"excluded sectors" directive). However, Belgium's implementation of
these directives has been slow and incomplete. Belgian public
procurement is still characterized by
-poor public notification and procedural enforcement;
-requirements of offsets in military procurement;
-an unofficial "buy local" policy; and
-nontransparency throughout the procurement process.
In 1994, the government implemented a new law on government procurement
to bring Belgian legislation into conformity with European Union
directives. The revision has incorporated some of the onerous
provisions of EU legislation, while improving certain aspects of
government procurement at the various governmental levels in Belgium.
The new law can only be evaluated over time and its benefits will be
heavily influenced by the way it is interpreted and implemented in
Belgium.
2) Ecotaxes and Environmental Regulation
The Belgian government has passed a series of ecotaxes, in order to
redirect consumer buying patterns away from environmentally damaging
materials (as defined by the "Green" parties, which supported the
government coalition's efforts to revise the constitution and create a
federal state.) These taxes will possibly raise costs for U.S.
exporters, as U.S. companies selling into the Belgian market adapt to
the phased-in implementation of these taxes. Environmental regulations
in general are further complicated by the fact that various central
government powers over the environment are being devolved to the three
regions of Belgium. We are beginning to see inconsistent enforcement of
environment regulations among the regions, which may lead to a less
favorable trading climate for U.S. business in some parts of the
country.
3) Cattle growth hormone ban
The EU bans imports of U.S. hormone-treated beef and all high-value
products containing hormone-treated meat. This has led to the loss of
U.S. agricultural sales in member states of the EU, including in
Belgium.
VII. INVESTMENT CLIMATE
1. Openness to Foreign Investment:
Belgium has traditionally maintained an open economy, highly dependent
on imported inputs and international trade for its well-being. Since
World War II, foreign investment has played a vital part in the Belgian
economy, providing much technology and employment. Given the importance
of trade and investment, Belgium generally discourages protectionism.
The government actively encourages foreign investment on a national
treatment basis. Foreign corporations in Belgium account for about one-
third of the top 3,100 corporations.
With a U.S. direct investment position of $11.6 billion at the end of
1993, more than 1,300 U.S. companies are present, ranging from offices
with one person to firms with thousands of employees. U.S. companies
give employment to some five percent of the active population, and other
foreign firms another four percent. Over the past ten years, all new
foreign investments accounted for some 9,700 projects. According to
statistics from the Ministry of Economic Affairs, foreign investment in
Belgium is concentrated mostly in manufacturing (45 percent), oil (21
percent), and chemicals (13 percent). Foreign companies investing in
Belgium are generally eligible for the same tax-related investment
incentives and subject to the same accounting requirements as domestic
investors.
Both the federal and regional governments actively encourage foreign
investment (in the wake of Belgian constitutional reform, most foreign
investment questions are handled by the regions). Any foreign company
wishing to engage in trade or manufacture in Belgium can set up a
subsidiary or branch. Belgian nationals are not required to own part of
the equity of the enterprise, and the repatriation of capital and
profits is unrestricted. Any form of incorporation may be chosen,
though the "Société Anonyme"/"Naamloze Vennootschap" is the basic type
of public limited liability company and usually the most suitable for
the subsidiary of a foreign company.
2. Investment Barriers:
Certain restrictive rules apply to all investors. Belgian and foreign
investors alike must obtain special permission to open department
stores, provide transportation, produce and sell certain food items, cut
and polish diamonds, and sell firearms and ammunition. Foreign
interests may enter into joint ventures and partnerships on the same
basis as domestic parties, except for certain professions such as
doctors, lawyers and architects. Most companies are required to report
price changes to the Ministry of Economic Affairs.
Despite the good foreign investment climate, members of the American
Chamber of Commerce Board have recently noted several continuing
concerns: The tendency for tax rates to rise and/or vary as Belgium
seeks to reduce its public sector deficit, apparently arbitrary
definitions and interpretations by tax authorities, overly long periods
before spouses of foreign executives can receive residence visas, poor
service provided by the state-owned telecommunications firm, and
difficulties in coordinating the sometimes conflicting requirements of
federal, regional, and local authorities.
Takeover legislation
The Belgian Parliament adopted a new takeover law on March 2, 1989,
which required all owners of at least five percent of a corporation's
total voting stock to notify both the Ministry of Economic Affairs and
the Banking and Finance Commission (Belgium's equivalent of the U.S.
Securities and Exchange Commission). For each additional ownership
increment of five percentage points, further disclosures are required.
In exchange for this enhanced protection against raiders, all companies
listed on the Brussels Stock Exchange are required to provide detailed
information on their corporate ownership structure to the Banking and
Finance Commission. In case of a takeover or a public offer, a company
must deposit a file with the Banking and Finance Commission stating its
own financial credentials and the details of the deal. Under EU law,
very large mergers ($3 billion from 1993 onwards) must also be approved
by the EU Commission (DG IV, the Directorate General for Competition
Policy). Belgian corporate legislation was changed in 1990 to prevent
golden parachutes as well as poison pills and other techniques used to
block corporate raiders.
Screening
A more stringent bill requiring the screening of foreign investment in
strategic sectors (mainly the energy sector) failed to pass in 1990.
The only current potential screening is found in the law of April 20,
1991, regarding the structure of public sector firms, which stipulates
that any takeover must be approved by the majority shareholder, i.e.,
the Government of Belgium.
Sectoral/geographic limits
There are no sectoral or geographic limitations specifically on foreign
investment. Flanders, Brussels and Wallonia, the three regions in
Belgium, actively compete with each other to attract new investment
projects. At present, railways, most telephone services, and civil
aviation systems are state-operated and closed to private competition.
The government, however, has begun a program of selective privatization.
Several small financial institutions have been privatized, and further
privatization of the state telecommunications firm is expected in 1995.
Preferences in the form of more lucrative incentives exist for certain
economically depressed areas and for particular sectors, especially high
tech. No restrictions limit investment to certain geographic areas or
sectors.
3. Conversion and Transfer Policies:
The Belgian Government encourages reinvestment of profits but does not
impose barriers to the repatriation of earnings or capital. On March 1,
1990, Belgium abolished its two-tiered exchange rate system. Residents
may undertake foreign exchange operations freely, subject to reports for
statistical purposes. Non-residents may use any currency to invest in
Belgium and may repatriate funds in any currency that is traded on the
free market. The Belgo-Luxembourg Exchange Institute (BLEI) exercises
control over exchange transactions.
Taxation
A flat tax rate exists for corporations, but manufacturing and service
corporations' taxable income under BF 13 million is taxed at a reduced
rate. Corporations are taxed on income at a standard rate of 39 percent
and a reduced rate ranging from 29 percent to 37 percent depending on
income (various academic studies demonstrate that after deductions the
effective corporate tax rate equals about 28 percent). Branches of
foreign offices are taxed on total profits at a rate of 43 percent, or a
lower rate in accordance with the provisions contained in a double
taxation treaty. Under the present bilateral treaty between Belgium and
the United States, that rate is 39 percent.
Taxable income is defined as operating profits, inventory valuation,
capital gains, and exchange differences. Tax deductions are given for
depreciation and interest payments.
Personal Income Taxes
Belgian residents are taxed on their worldwide income. Non-residents
are subject to taxes on income earned and collected in Belgium. Capital
gains and investment income received outside the country are not taxable
for non-residents working in Belgium. Tax rates for personal income
range from 25 to 55 percent.
Indirect Taxes
A Value Added Tax (VAT) is charged on the sale of all goods and services
within Belgium. The standard VAT rate in Belgium is 20.5 percent. A
reduced rate of six percent is applied to basic necessities, with an
intermediate rate of 12 percent on some commodities.
Other payments include social security contributions and a tax on
interest income which was reduced from 25 to 10 percent in March 1990.
The tax on dividends is still 25 percent for residents.
The United States and Belgium have negotiated a treaty avoiding double
taxation for U.S. companies operating in Belgium. This treaty provides
for a special reciprocal reduction of the withholding rate on corporate
dividends and royalties of five percent rather than a level of 15
percent. Interests paid to U.S. companies are taxed at 10 percent.
A tax circular for expatriate executives and research staff covers the
Belgian tax status for several categories of expatriates temporarily
residing in Belgium. Known as the "Circular Regime", it grants certain
major exemptions from Belgian taxation and has been considered generally
satisfactory by the American business community in Belgium.
Social Security Agreement
In July 1984, a Social Security Agreement between the United States and
Belgium entered into force. This agreement is known as a social
security totalization agreement which applies to citizens of each
country working in the other country. In short, the agreement allows
such workers to be eligible for monthly retirement, disability, or
survivors benefits under the social security system of one or both
countries. It also ensures that workers are not required to pay social
security taxes in both countries on the same earnings. Details on the
application of the agreement to a particular situation should be
obtained from the Social Security Administration, OIO-Totalization, P.O.
Box 17049, Baltimore, MD 21235. The U.S. Embassy in Brussels can also
provide a list of lawyers in Belgium specializing in helping Belgian and
American citizens understand and benefit from the agreement.
With respect to discriminatory or preferential export and import
policies, Belgium's practices track with those established by the
European Union. Import price controls do not exist. There are no
export duties or taxes.
Belgium, like all other EU-member states, is implementing the EU's
Second Banking Directive, as well as the Fourth Investment Directive
(regulating the insurance sector). Under the EU program for financial
integration, subsidiaries of financial institutions headquartered in
other member states will continue to be governed by the principle of
national treatment. As a result, such subsidiaries will be treated in
the same manner as other incorporated entities in the host state. For
example, a German banking subsidiary of a U.K. bank could set up
branches throughout the Union under German rules with respect to
permissible activities.
4. Expropriation and Compensation/Dispute Settlement:
There are no outstanding expropriation/nationalization cases in Belgium
with U.S. investors. There is, however, one major continuing investment
dispute of which the Embassy is aware:
-- In 1988 W.R. Grace company decided to accept $7 million in investment
subsidies from the Flemish Regional Government and place its production
unit for silicon dioxide and hydrogen fluoride in Belgium. Construction
was completed in 1991 on a project valued at over $100 million. The
Grace unit was located adjacent to the Prayon-Rupel phosphoric acid
facility because that plant was both a source of the sulfuric acid used
in the Grace process and was a consumer of the diluted sulfuric acid
that was a by-product of the Grace operation. The Prayon-Rupel
phosphoric acid operation in turn depended on its ability to dispose of
the gypsum it generated in authorized disposal sites. After initially
granting a disposal license for gypsum to Prayon-Rupel, in 1992 the
Flemish Regional Government reversed its decision leaving Prayon-Rupel
without an authorized disposal site and unable to continue its
production relationship with the Grace unit. Grace then decided to shut
down its production unit. Grace regards the Flemish Government's
decision a breach of promise and is seeking compensation in Belgian
courts. An initial court decision went against Grace, but the matter
has still not been finally resolved.
There is, however, no pattern of discrimination against foreign
investment in Belgium. Belgium is a member of the International Center
for the Settlement of Investment Disputes (ICSID) and regularly includes
provision for ICSID arbitration in investment agreements.
5. Investment Incentives and Performance Requirements:
Starting with the law of August 1980 on Regional Devolution in Belgium,
the budgets for investment incentives were devolved to Belgium's three
regions: Flanders, Brussels, and Wallonia. Tax measures designed to
attract new investment, however, remain the privilege of the Federal
Government. In general, all incentives, regional or national, are
available to foreign and domestic investors alike. Belgian investment
incentive programs at all levels of government seem likely to shrink in
the next several years as pressures to limit them from the European
Union and from declining national and regional budget resources
intensify. The EU Commission believes that investment incentives
distort the single market, impair structural change, and threaten EU
convergence and social and economic cohesion. Belgium has historically
been near the top of the EU in providing state aids including investment
incentives.
Under Belgium's new federal state, the three regional governments will
administer most kinds of investment incentives, and the federal
government will retain little control. The regions will put new
emphasis on meeting more generalized objectives such as promoting
innovation, research and development, energy saving, environmental
cleanliness, exports, and most of all, employment. Given the changing
nature of investment incentives offered by the three regions, interested
parties should contact the relevant regional investment
companies/authorities, as follows:
(1) Regional Office for Foreign Investment for Brussels, 25 Rue du
Champ de Mars, 1050 Brussels, Tel: 32/2/513-9700, Fax: 32/2/511-5255;
(2) Flanders' Investment Office, Markiesstraat 1, 1000 Brussels, Tel:
32/2/507-3852, Fax: 32/2/507-3851;
(3) Regional Investment Company for Wallonia (S.R.I.W.), Rue Mazy 25-
27, 5100 Namur (Jambes), tel: 32/81/33-1211, Fax: 32/81/33-1299.
The Federal Government also provides investment-related information at
the following address:
Ministry of Economic Affairs, Foreign Investors Service,
Square de Meeus 23, 1040 Brussels, Tel: 32/2/506.54.11
Fax: 32/2/514.03.89.
As part of an ongoing effort to assist the potential foreign investor,
the American Chamber of Commerce in Belgium runs an Investment Referral
Service which provides information on investment-related questions,
including the investment incentives available throughout Belgium. The
investor may contact the Chamber directly at 50 Avenue des Arts, Box 5,
1040 Brussels or via fax at (32) (2) 513-7928. Please request their
Investor Referral Service.
Federal programs
Notwithstanding the devolution of investment subsidies to the three
regions, the Federal Government still controls the important policy
variable of tax deductions for certain types of investment: development
zones, new venture capital companies, coordination centers, and
distribution centers.
Coordination Centers
Coordination centers serve companies of an international group. A
center consists of affiliated companies maintaining at least a 20
percent direct or indirect participation in one or more other companies
under common agreement. Coordination centers are granted special tax
status for a period of 10 years. They can be established as branches of
foreign companies or as Belgian stockholding companies and can be
located anywhere in Belgium. During the 10-year period, recognized
coordination centers are taxed on notional income calculated as between
8 and 12 percent of a center's incurred expenses. Salary costs and
financing expenses are disregarded in determining the amount of expenses
to which the percentage is applied. Coordination centers are also
exempt from real estate taxes, withholding taxes on dividends,
withholding taxes on interest, and registration taxes. About 350
coordination centers are now active in Belgium, many of them American-
owned.
Development zones
High-tech investments in depressed areas of the country are eligible for
a 10-year tax holiday and certain exemptions concerning the personal
income taxation of their foreign executives. High technology investment
is specifically defined to include advanced data processing, software
technology, micro-electronics including optro-electronics, office
automation, robotics, telecommunications and bio-engineering. An
enterprise qualifying under this scheme must employ between 20 and 200
people and have its entire operation within the development zone.
Distribution centers
Belgian tax authorities have also established special corporate tax
rules for foreign companies which establish a distribution center in
Belgium if certain conditions are met. The newly established
distribution center may operate as a branch of a foreign company or a
Belgian subsidiary. No specific rules apply to minimum employment or
turnover, in contrast with such rules for coordination centers.
Qualifying distribution centers can realize significant tax savings.
After strong representations from the Embassy and the American Chamber
of Commerce, the Federal Government decided in 1994 to expand the scope
of distribution centers in Belgium significantly which should sharply
increase their appeal. The modified rules apply to existing as well as
new distribution centers.
No performance requirements are applicable to foreign investors, nor
does it appear likely that the government will establish such
requirements.
6. Right to Private Ownership and Establishment:
No restrictions in Belgium apply specifically to foreign investors. All
investors, Belgian or foreign, must obtain special permission to open
department stores, provide transportation, produce and sell certain food
items, cut and polish diamonds, and sell firearms and ammunition.
7. Protection of Property Rights:
The rights granted under U.S. patent, trademark, or copyright law can be
enforced in the United States, its territories and possessions only.
The EU, for its part, has taken a number of initiatives to provide
intellectual property protection, but not all measures haven been
implemented. In cases of non-implementation, national laws still
prevail.
Patents
Belgium is a member of the World Intellectual Property Organization
(WIPO) and the European Patent Convention (EPC). A single European
patent, valid throughout the EU, does not yet exist since the community
patent convention has not yet come into force. In the meantime, the
patent applicant can choose between a national and a multiple-country
patent. In the latter case, a single application to the European Patent
Office in Munich (European Patent Office, Erhardstrasse 27, D-80331
Muenchen, Germany, Tel: 49-89-23990, Fax: 49-89-23992850) is required
for obtaining patents valid in a number of countries within the EU, as
well as Liechtenstein, Monaco, and Switzerland. A patent thus granted
will not be valid in Belgium unless a copy of the grant in one of
Belgium's three national languages is filed with the Belgian Office of
Industrial Property described below.
To obtain a national patent in Belgium, the inventor or his assignee
must file a request with the Office of Industrial Property in the
Ministry of Economic Affairs. After a search of the European Patent
Office in Munich, if requested by the inventor, the Belgian government
will issue the patent without guarantee of patentability. National
patents are valid for twenty years if a search has occurred. If not,
the validity is reduced to six years. Once granted, the patent is
registered with the Register of Patents, again located in the Ministry
of Economic Affairs.
Trademarks
The EU Trademark Office still needs to be established in Alicante,
Spain, and the first EU trademark registrations are not expected until
mid-1996. (Applications will be accepted beginning January 1, 1996.)
In the meantime, trademark registration is handled on a national basis.
Trademarks in Belgium are regulated by the Uniform Benelux Law of 1962,
which offers protection in Belgium, the Netherlands and Luxembourg. An
application for trademark can be filed either with the Belgian National
Office in the Ministry of Economic Affairs or with the Benelux Trade
Mark Bureau located in The Netherlands (Bankastraat 51, The Hague). A
search is required to ascertain the existence of a similar or identical
trademark for the same category of product. If granted, protection
lasts for ten years from the date of application and can be renewed for
further periods of ten years each. Trademarks must generally be used
within three years of registration.
Copyrights
Belgium is a member of the Berne Convention and the Universal Copyright
Convention of Geneva. As a member of the UCC, to which the U.S. and 50
other countries belong, Belgium accords authors automatic copyright
protection when registered with this organization. Protection exists
for the life of the author, plus 50 years after death. In addition,
Belgium has passed a revised copyright law which brings Belgian practice
into conformity with existing EU directives. However, EU directives
permit some variation in each member state and U.S. firms wishing to
protect their copyrights in Belgium should consult local legal counsel.
This is particularly true regarding reciprocity provisions in the new
law.
8. Regulatory System: Laws and Procedures:
The Belgian Government has adopted a generally transparent policy and
effective laws to foster competition. Tax, labor, health, safety and
other laws and policies to avoid distortions or impediments to the
efficient mobilization and allocation of investment exist comparable to
those in other European Union member states. Nevertheless, foreign and
domestic investors in large retail operations face stringent regulations
which protect small- and medium-sized enterprises.
9. Efficient Capital Markets and Portfolio Investment:
Belgium has in place ample policies to facilitate the free flow of
financial resources. Credit is allocated at market rates and is
available to foreign and domestic investors without discrimination.
Belgium is fully served by the international banking community and is
implementing all relevant European Union financial directives.
10. Political Violence:
The Embassy is aware of no incidents of politically-motivated damage to
foreign investments in Belgium in recent years.
11. Bilateral Investment Agreements:
Belgium by itself has bilateral investment treaties with Algeria,
Argentina, Bolivia, Chile, Cyprus, Georgia, Indonesia, Mongolia,
Paraguay, Uruguay, Viet Nam, and Zaire. As a partner in the Belgium-
Luxembourg Economic Union (BLEU), it has bilateral investment treaties
or agreements with Bangladesh, Cameroon, Ceylon, China, Czechoslovakia,
Egypt, Hungary, the Republic of Korea, Malaysia, Morocco, Romania,
Rwanda, Singapore, Tunisia, and Turkey. Additionally, BLEU agreements
have been signed but not yet implemented with Bulgaria, Burundi,
Liberia, Mauritania, Malta, and Thailand. Belgium and Luxembourg
together, but outside the BLEU, have also signed investment treaties
with Poland and Russia. All these agreements/treaties provide for
mutual protection of investments.
12. OPIC and Other Investment Insurance Programs:
Belgium, as a developed country, does not qualify for OPIC programs.
Apparently no investment insurance programs for Belgium are operated by
other countries.
13. Labor:
Belgian workers are highly unionized (63 percent of the work force),
highly productive, and usually enjoy high salaries. At the same time,
in recent years the unemployment rate as measured according to the EU's
definition has been stuck at 9-10 percent. High wage levels and high
levels of unemployment can coexist because most of Belgium's long-term
unemployed are virtually unemployable without major retraining---their
overall educational level is significantly lower than that of the
general population. At the same time, a shortage exists for workers
with training in computer hardware and software, automation and
marketing. The resulting bottlenecks cause wage pressures.
Belgium's comprehensive social security package is composed of five
major elements: family allowance, unemployment insurance, retirement,
medical benefits and a sick leave program which guarantees salary in
event of illness. Currently, employer payments to the social security
system stand at 35.02 percent of salary, while employee contributions
comprise 13.07 percent. In addition, many private companies offer
supplemental programs of medical benefits and retirement.
Belgian labor unions, while maintaining a national superstructure, are,
in effect, divided along French and Dutch linguistic lines. The two
main confederations, the Confederation of Christian Unions and the
General Labor Federation of Belgium, maintain close relationships with
the Christian Democratic and Socialist political parties, respectively.
They exert a strong influence in the country---politically, socially and
industrially. A national bargaining process covers inter-professional
agreements, which the trade union confederations negotiate biennially
with the government and the employers' associations. In addition to
these negotiations, or occasionally after the failure of talks, the
unions negotiate further agreements within the various industrial
sectors.
Foreign firms, which generally pay well, usually have harmonious labor
relations. Nonetheless, problems can occur, particularly in connection
with the shutting down or restructuring of operations. Many strikes are
one-day symbolic actions, but longer industrial actions have occurred.
Firing a Belgian employee can be extremely expensive. An employee may
be dismissed immediately for cause, such as embezzlement or other
illegal activity, but when a reduction in force occurs, the procedure is
far more complicated. For white collar workers, the minimum standard is
three months' notice or severance pay, or a combination of the two, for
each five-year period or fraction thereof during which the employee has
worked for the company. In the case of blue collar workers, the minimum
is two weeks notice or the wage equivalent.
In those instances where the employer and employee cannot agree on the
amount of severance pay or indemnity, the case is referred to the courts
for a decision. To avoid these complications, firms should provide for
a "trial period" in any employer-employee contract.
14. Foreign Trade Zones/Free Ports:
Belgium does not have foreign trade zones or free ports as such.
Belgian customs regulations, however, provide for the duty-and tax-free
import of goods which are declared to be in the country temporarily for
processing and transshipment. The goods may be stored in public or
private bonded warehouses which are located throughout the country. The
major Belgian seaports---Antwerp, Brugge, Brussels, Ghent, Oostende and
Zeebrugge---have customs free zones, as does the Brussels International
Airport at Zaventem. For more information on this type of operation, a
U.S. company should contact the American Embassy in Brussels or the
following:
Ministry of Finance
Customs Administration
Rijksadministratief Centrum Bus 37
Kruidtuinlaan 50
1010 Brussels
Contact: Mr. Andre Rombaut
Tel: 32/2/210.32.35
Fax: 32/2/210.33.13
or
Fax: 32/2/210.32.76
15. Capital Outflow Policy:
Belgium does not restrict capital outflow. When foreign investment is
considered to be in the Belgian national interest because it would
stimulate exports, provide royalty income through technology transfer,
or help to supply needed imports, the Belgian Corporation for
International Investment (SBI) may provide assistance. Subsidiaries of
foreign companies established in Belgium are eligible for and have
received SBI aid.
SBI is 58 percent government owned but financially self-sustaining. It
participates in Belgian foreign investment by holding equity shares,
convertible debentures, or long-term convertible loans in foreign
undertakings. SBI activities are not restricted to any geographic area.
16. Foreign Direct Investment Statistics:
TABLE I
BELGIAN DIRECT INVESTMENT POSITION IN THE U.S.
1989 - 1992
(current millions of dollars)
1989 1990 1991 1992
Petroleum NA NA NA NA
Manufacturing 941 1,473 1,225 1,390
Wholesaling 588 509 653 1,104
Banking -71 NA NA NA
Finance NA 2,059 -80 -158
Services 66 NA 80 58
Other 47 24 9 91
Total 3,972 4,230 3,653 4,066
Source: United States Department of Commerce, Survey of Current
Business, July 1993.
TABLE II
U.S. DIRECT INVESTMENT POSITION IN BELGIUM
1989 - 1992
(current millions of dollars)
1989 1990 1991 1992
Petroleum 246 327 294 291
Manufacturing 4,041 4,331 4,002 5,940
Wholesaling 1,790 2,177 2,145 1,811
Banking 199 NA NA NA
Finance 1,335 2,059 1,775 2,072
Services 295 352 438 502
Other 35 NA NA NA
Total 7,941 9,462 8,830 10,771
Source: United States Department of Commerce, Survey of Current
Business, August 1992
INVESTMENT
- Total foreign direct investments - 1991
36.67 (U.S.$ billions) (1)
- U.S. investments - 1992
10.8 (U.S.$ billions) (2)
- U.S. investments as a % of total foreign investment - (3) 24.0 %
- Principal foreign investors:
U.S.
Germany
Netherlands
France
(1) This figure is an extrapolation from the figures which follow. No
part of the national or regional governments keeps total investment
figures. Therefore, we have extrapolated from known figures in order to
produce a figure for total investment.
(2) Survey of Current Business - August 1992. Based on book value and
not current asset value.
(3) Ministry of Economic Affairs. This percentage probably
underestimates by a wide margin the actual share of U.S. investment in
Belgium, since it is based on book value and not on current value.
Since much U.S. investment in Belgium took place a number of years ago,
the actual share of total investment based on current value is estimated
to be closer to 40 percent.
VIII. TRADE AND PROJECT FINANCING
Overview and Hints:
Belgium is a country where exports and imports amount to roughly 2/3's
of GDP. Consequently, the process of paying for imported goods is well
understood by banking staffs - even in the smallest regional and local
branches. Generally speaking, buyers show a preference for payment by
cash against documents (CAD), as this is the simplest and least costly
method. However, they understand U.S. and transcontinental buyer
requirements for letters of credit (L/C). This is often the form of
payment for U.S. companies beginning to sell to Belgium. In cases,
where Belgian importers and their U.S. suppliers have built up mutual
confidence, letters of credit are superseded by time drafts and
eventually by CAD terms. Exceptionally, open account terms; i.e. where
the importer pays after receipt of the goods, are used.
Belgian importers are relatively small, with inadequate sources of
inexpensive capital. Real rates of interest for working capital loans
now run more than seven percent, and Belgian importers will ask for the
most lenient credit terms possible. In addition, they are accustomed to
being offered flexible payment terms, mainly from their neighboring
trading partners, i.e. France, Germany, Holland, U.K., Switzerland, and
(sometimes) Italy. Extended payment terms of 30, 60, 90 and even 120
days are not unusual, though the most common payments terms are net 30
days. However, Belgian businesses, like many in Europe, routinely delay
payment beyond the agreed upon payment terms. In Belgium, some 43% of
all payments are not made on time, although 80% of the delayed payments
are made within another 30 days. In short, 91% of all payments by
Belgian businesses are made net 60 days. This is a better record than
in Italy or the U.K. and equal to that of France and the Netherlands.
Since the use of credit is consequently wide-spread, flexible credit
terms can be important to winning sales contracts in Belgium. A U.S.
firm should consider offering such terms, provided he/she is able and
willing to provide such finance and provided the U.S. company has done a
full credit check into the bonafides of the Belgian company. Even then,
it would probably be wise to try several shipments on a secured credit
basis before moving to easier terms. There are several local credit
agencies available, including Dun and Bradstreet. Additionally, the
U.S. Embassy provides such a service via its World Traders Data Reports.
Import duties and value added tax (vat) are applied to the CIF (cost
insurance/freight) value of goods. The rate of import duties is the
same as that applied by all EU countries. Since products coming from
other E.C. members enter Belgium duty free, U.S. products often start
off with an average 5-6% price disadvantage. By offering favorable
credit terms, U.S. suppliers can help their importers offset a portion
of that higher price.
There are no foreign exchange regulations or limitations on the transfer
of capital or profits in Belgium, except in exceptional situations; i.e.
U.N. sanctions against Iraq, Libya, and Haiti.
Counter or barter trade, mainly with Eastern European and other
countries short of foreign exchange, continues to be a recognized
business practice in Belgium. Because of its sophistication in
international trading practices, Belgium is well placed to develop this
type of business.
The Belgian financial marketplace is private-sector oriented, and there
are no government-sponsored institutions for financing imports. The
Belgian franc is linked to the Deutsch mark within the EU's Exchange
Rate Mechanism (ERM). It has fluctuated widely, as have all other
currencies, against the U.S. dollar. The current exchange rate is one
U.S. dollar equals thirty Belgian francs.
There are three main trading banks in Belgium: the General Bank,
Brussels Bank Lambert and Kredietbank. Each one of them has a well-
developed correspondent bank network in the U.S., as well as a local
representative office in at least one major U.S. city. Because of the
lack of restrictions, easy tele-electronic communications, and fluent
use of English, banking relationships with the U.S. and other countries
are smooth.
Though Belgium has a very high public debt, 85% of that debt is
domestically held. Therefore, there are no foreign exchange problems.
Moreover, the balance of payments situation is very healthy, and there
are no problems related to the country's ability to maintain its
extensive import program.
Key Banks in Belgium:
GENERALE BANK
Montagne du Parc, 3
1000 Brussels
Tel: 02/516.21.11
Fax: 02/516.42.22
Paul-Emmanuel Janssen, Chairman of the Board of Directors and Ferdinand
Chaffart, Chairman of the General Management Committee and Managing
Director.
Employs: 14,444 in Belgium and the total staff amounts to 22,944;
consolidated balance sheet: BF 2,318 billion ($64.4 billion).
This is Belgium's largest bank principally controlled by the powerful
Société Générale de Belgique holding company. In fact, it ranks as the
22nd largest deposit bank in Europe while ranking in the 28th position
in total assets. Initially established in 1822, this bank offers -
through its branch network in Belgium and its overseas establishments -
to its domestic and international customers, individual or corporate, a
complete range of financial products and services. It also heads a
network of subsidiaries geared to specialized sectors of the financial
market such as private banking, bank insurance, diamond and vehicle
finance, the stock exchange, leasing, factoring, venture capital and
security. In Belgium it operates through a network of 1100 branches,
coordinated by 32 regional offices, and divided into 6 areas.
BANK BRUSSELS LAMBERT
Avenue Marnix, 24
1050 Brussels
Tel: 02/547.24.84
Fax: 02/547.22.17
Jacques Moulaert, Chairman of the Board and Daniel Cardon de Lichtbuer,
President of the Bank.
Employs: 12,000; consolidated balance sheet: BF 1,993 billion ($55.4
billion).
This bank is the result of the merger of Banque de Bruxelles, founded in
1871, (formerly ranking second) and Banque Lambert (fourth largest)
established around 1974. Belonging to the Group Brussels Lambert
holding company, BBL (more commonly known) is Belgium's second largest
private-sector commercial bank. According to the British periodical
"The Banker", BBL ranks as the 49th European bank and as the world's
90th. BBL provides its services to private individuals, small- and
medium-sized enterprises, large companies, multinationals, institutional
investors and public authorities. Since 1991 its activities have been
divided into two business groups, personal customers and enterprises and
professional and international banking. In Belgium it operates through a
network of 13 district head offices, which are divided into three
regions under which, in turn, consist of 965 branches and 200 "self-
banks".
KREDIETBANK
Arenbergstraat, 7
1000 Brussels
Tel: 02/517.52.62
Fax: 02/517.51.95
Edward Wauters, President of the Board and Marcel Cockaerts, President
of the Management Committee.
Employs: 11,495; consolidated balance sheet: BF 1,754 billion ($48.7
billion)
Founded in 1935, this is a Flemish area bank, which belongs to the
Almanij-Kredietbank Group, and has worldwide representatives and
branches. Also known as the KB, it controls another bank in Belgium
called Credit General de Banque, which operates in Wallonia and
Brussels. The bank operates a domestic network of more than 800
branches. Engaged in international banking, it provides all commercial
and investment banking services to private customers, companies, public
and semi-public entities as well as institutions both in Belgium and
abroad through its 1500 correspondent banks all over the world.
CREDIT COMMUNAL DE BELGIQUE S.A.
Boulevard Pacheco, 44
1000 Brussels
Tel: 02/222.11.11
Fax: 02/222.40.32
Frank Swaelen, Chairman of the Board of Directors and François Narmon,
Chairman of the Management Committee.
Employs: 3,751; balance sheet total: BF 2,134 billion BF ($59.3
billion).
Just after 1912, this municipal credit institution created a totally new
method of financing its short-tern loans, the savings bond. Today, it
still continues to develop and constantly improve the savings bond.
Apart from being the number one credit institution in the savings bond
area, it is becoming a fully-fledged major bank.
MORGAN GUARANTY TRUST COMPANY
Avenue des Arts, 35
1040 Brussels
Tel: 02/508.82.11
Fax: 02/508.83.34
Herve Huas, Managing Director and Chairman of the Management Committee.
Employs: 1,200; total assets: unknown for Belgium, consolidated with the
J.P. Morgan & Co. Inc. results.
Ranking as the 5th largest bank in Belgium, this is a branch of the J.P.
Morgan & Co. with headquarters in New York City. The bank offers
commercial and investment banking services to corporate and
institutional clients. In addition to the traditional commercial
banking services, it offers a variety of specialized services to
international customers. Another company of the J.P. Morgan group in
Belgium is Euroclear, located at Blvd. Emile Jacqmain, which is a
clearing house for Eurobonds and internationally traded securities.
CITIBANK BELGIUM S.A.
Rue du Trone 60
1050 Brussels
Tel: 02/504.55.11
Fax: 02/504.55.39
Anthony S. Fortunato, Managing Director.
This is the Belgian subsidiary of Citibank N.A. with headquarters in New
York City. Citibank opened its Belgian branch in 1919 at the Grand
Place. During the Second World War, this branch was closed but re-
opened in 1962. As a result of local acquisitions, it now has 60
branches in Belgium. Today it is a leading international and domestic
bank which has relations with most of Belgium's largest industrial and
trading companies. This bank also offers specialized services to
financial institutions, insurance companies and to public sector
entities.
BANK OF AMERICA
Uitbreidingstraat 180, bus 6
2600 Antwerp
Tel: 03/280.42.11
Fax: 03/239.61.09
John Hennessy, Senior Vice President and Regional Manager Northern
Europe.
This is the Belgian branch of Bank of America N.T. & S.A., with
headquarters in San Francisco. This Belgian branch was established in
1965. It provides a full range of commercial banking services and has a
branch office in Brussels:
Bank of America
Avenue Louise 480, bte. 5A
1050 Brussels
Tel: 02/648-9010
Fax: 02/648-1191
Richard Challinor, Director of Brussels Office
CHASE MANHATTAN BANK
Avenue Louise 326
1050 Brussels, Belgium
Tel: 32/2/629-5811
Fax: 32/2/629-5830
Mr. F. Verlinden, Vice President
ANDLINGER & CO.
Avenue Louise 148, Box 2
1050 Brussels, Belgium
Tel: 32/2/647-8070
Fax: 32/2/648-2105
Mr. Johan Volckaerts, General Manager
CITILEASE
(A division of Citibank)
Avenue de Tervuren, 249
1150 Brussels, Belgium
Tel: 32/2/761-1211
Fax: 32/2/761-1293
Mr. Albert May, Vice President
EUROCLEAR OPERATIONS CENTER
(A unit of Morgan Guaranty Trust)
Blvd Emile Jacqmain 151
1210 Brussels, Belgium
Tel: 32/2/224-1211
Fax: 32/2/519-1449
Mr. Luc Bosmans, Executive Vice President
IX. BUSINESS TRAVEL
Business Customs and Infrastructure:
The quality of life in Belgium is high. Belgium is among the top twenty
countries in the world in terms of per capita income, and most Belgians
own their own home. The social security system is one of the best in
the world and provides for a decent life even for most deprived
citizens. The health care system in Belgium is excellent, offering
affordable care to all Belgians. Education from kindergarten through
high school is free of charge and only a small registration fee is
charged every year for university level studies. As a rule, three to
four languages are taught all through high school, and many Belgians are
fluent in three languages. Nearly everyone involved in business speaks
English, usually fluently.
There are three language communities in Belgium: The Flemish Community,
consisting of the population living in Flanders; the French Community,
consisting of the population of Wallonia, and a small German-speaking
Community of some 66,000 inhabitants in the far eastern part of the
country.
One of the major strengths of Belgium is, first and foremost, its
significant reserve of skilled personnel. Belgian labor is well
trained, generally multilingual, and, in spite of a high level of
unionization, enjoys good labor relations and a well-earned reputation
for very high productivity.
Belgians also have the second highest savings rate in the world,
surpassed only by the Japanese. This provides a ready source of capital
for consumption and expenditure and a low level of personal debt. As
noted in the commercial overview, Belgians are open to new ideas,
products, and services. They value American technology and regard U.S.
products as being of high quality. Still, given the vast array of
foreign products available in Belgium, Belgians will shop for value at
affordable prices. Markups in Belgium are generally several times the
U.S. wholesale price, making consumer goods expensive by comparison to
U.S. prices.
Belgian cuisine is among the best in the world. Taxis and other means
of public transportation are readily available, and Belgium has good
communications links with the rest of the world. Belgium offers an
extraordinary media diversity with the availability of the broadest
selection of television channels in Europe. TV owners currently have
access to programs broadcast from 7 different countries in Dutch,
English, French, German, Spanish, and Italian. CNN is also available on
cable. The country is blessed with an intense and varied cultural life
and is highly regarded for its tolerance of foreign goods and persons,
and its overall life style and family-oriented values system.
As a result of our involvement in WWs I and II, Belgians have a very
positive view of Americans. Each Memorial Day, many hundreds of
Belgians attend ceremonies at several sites in Belgium. Belgians are
also relatively frank and open in business discussions, making it easy
for Americans to do business here and in a manner similar to doing
business at home.
LIST OF BELGIAN HOLIDAYS - 1996:
January 1 New Year
April 8 Easter Monday
May 1 Belgian Labor Day
May 16 Ascension Day
May 27 Whit Monday
July 21 Belgian Independence Day
August 15 Assumption Day
November 1 All Saints Day
November 11 Veterans Day
December 25 Christmas
X. APPENDICES
APPENDIX A. COUNTRY DATA:
A. Population: 10 million
B. Religion: Roman Catholic (75 percent), Agnostic/Atheist (23
percent), Other (2 percent)
C. Government: Constitutional monarchy with Parliament
- Head of State: King Albert II
- Head of Govt.: Prime Minister Jean-Luc Dehaene
D. Language: Dutch (57 percent), French (42 percent), German (1
percent)
E. Next scheduled election: May 1999.
APPENDIX B. DOMESTIC ECONOMY:
1993 1994 1995 (e) 1996 (e)
a. GDP (current $b) 210.7 228.6 252.4 282.4
b. Real GDP growth rate(%) -1.7 +2.2 +2.3 +2.5
c. GDP per capita ($) 21,073 22,860 25,240 27,684
d. Govt. spending
as % of GNP 53.9 53.6 52.5 52.2
e. Inflation
(% change in CPI) 2.8 2.4 1.8 2.6
f. Unemployment (%) 9.4 10.1 9.7 9.6
g. Foreign exch.
reserves ($bn) 21.04 22.08 n/a n/a
h. Average annual exchange
rate ($1=BFr.) 34.57 33.43 30.87 29
i. Foreign debt ($bn) 43.96 40.36 n/a n/a
j. Unit Labor Costs
(% change) 3.2 1.2 0.1 0.2
k. Labor Productivity Rate 1.2 2.4 2.4 2.4
APPENDIX C. TRADE:*
1993 1994 1995(est)*
A. Total exports (f.o.b./$b)** 111.3 115.6 113.9
B. Total imports (c.i.f./$b)** 114.4 117.5 110.7
C. U.S. exports (f.a.s./$b)*** 8.9 10.8 n/a
D. U.S. imports (customs/$b)** 5.1 6.4 n/a
* Firm trade data is only available through 1993. 1994 and 1995 data
are partial and estimated. There is no estimate of 1996 trade data
available.
** Source for data is statistics for the Belgium-Luxembourg Economic
Union (BLEU).
*** U.S. export figures are based on U.S. Department of Commerce census
data, which includes goods destined for Luxembourg, but which also
includes intransit trade and re-exports to other European countries.
Approximately 50% of U.S. exports to Belgium are
transported to a third country final destination.
E. Main U.S. exports to Belgium: Tobacco & tobacco products, including
cigars & cigarettes; gem diamonds; coal; automotive parts & accessories;
computer hardware & software; chemicals.
F. Main U.S. imports from Belgium:
Gem diamonds; cars & other vehicles; petroleum; construction equip.
chemicals; textiles machinery; carpets & other floor coverings.
G. Foreign supplier share of Belgian imports (percent)
1991 1992 1993
1. Germany 23.5 23.9 24.1
2. Netherlands 17.2 17.5 17.6
3. France 15.8 16.5 16.7
4. United Kingdom 8.4 7.7 7.5
5. United States 4.8 4.4 4.3
H. Balance of Payments ($b)
(Belgian current account surplus) 4.8 4.4 4.8
I. Trade balances with leading trading partners ($b)
1. Germany -0.4 -1.7 -1.7
2. Netherlands 3.4 3.2 -5.04
3. France -4.6 -5.0 3.14
4. United Kingdom 0.3 0.1 0.3
5. United States -0.3 -0.7 -0.83
APPENDIX D. INVESTMENT STATISTICS:
A. Foreign Ownership Restrictions: None
B. Total U.S. Investment: $11.6 billion (Year-end 1993)
C. U.S. Share of Foreign Investment: 40 percent
D. Principal Foreign Investors:
United States
Germany
Netherlands
France
E. Belgian Investment in the United States: $4.6 billion (Year-end
1993)
APPENDIX E. U.S. AND COUNTRY CONTACTS:
U.S. Embassy Personnel
U.S. and Foreign Commercial Service Personnel:
FCS/EMB PSC 82 Box 002
APO AE 09724-1016
Tel: 322/513-3830
Fax: 322/512-6653
Terrance Flannery (U.S.)
Commercial Counselor -- Senior commercial representative on the country
team. Formulates the annual country marketing plan, the annual budget,
and the Commercial Section's workplan. Writes the monthly hi-lights
report. Conducts outreach and liaison with other trade-related
organizations, and the U.S. & Belgian business communities. Provides
leadership, support and final evaluations of all US Department of
Commerce personnel.
John W. Avard (U.S.)
Commercial Attache -- Supervises work of Commercial Foreign Service
Nationals. Organizes trade events. Oversees publication of "Business
Links". Supervises development of all market research.
George Luff (BE)
Senior Trade Specialist -- Oversees the "Visit USA" Center and
Committee. Coordinates "Matchmaker" trade missions. Industry
specialist for chemicals, textiles, consumer goods, energy, travel, and
services. Primary contact with the Wallonian Region.
Nicole Pollet (BE)
Trade Specialist -- Specializing in high technology sectors.
Assists U.S. companies interested in investing in Belgium. Primary
liaison with the Flanders region.
Alain Cauwe (BE)
Trade Specialist -- Covering developments in medical technology, general
industrial machinery, security and safety equipment, analytical
instrumentation, pharmaceuticals, the environment, and aerospace.
Yvette Pauwels (BE)
Commercial Assistant -- Responsible for managing the Commercial Service
computer system and database of 5,000 Belgian importers of U.S.
products. Prepares credit reports on Belgian firms on behalf of
American companies.
Brigitte de Stexhe (BE)
Budget Specialist -- Provides trade event support. Orders materials for
the commercial library. Counsels Belgian business on U.S. export
controls. Trade Specialist for printing and paper sectors, photographic
products, and seafoods.
Isabelle Uyttenhove (BE)
Commercial Assistant -- Editor of "Business Links" Processes NATO
tenders. Handles trade complaints. Trade Specialist for jewelry,
cosmetics, and furniture.
Elfrieda Lambregts (BE)
Executive Secretary to the Commercial Counselor and Commercial Attache -
- Handles all of the Section's time-keeping and other personnel
matters. Maintains the paperflow for the entire Commercial Section.
Danny Dumon (BE)
Commercial Information Specialist and Commercial Librarian -- With main
responsibility for assisting visitors and handling written and phone
requests for commercial information.
Ms. Kim Boyd
Director
Visit USA Tourist Information Center
350 Avenue Louise
1050 Brussels, Belgium
Tel: 322/648-4356
Fax: 322/648-4022
Economics Section:
Mr. Terry Breese
Economic Counselor
EMB PSC 82 Box 002
APO AE 09724-1016
Tel: 322/513-3830
Fax: 322/512-6653
Foreign Agricultural Service: (Note: The Agricultural Counselor in The
Hague has regional responsibility for Belgium and Luxembourg.)
Mr. Steve Yoder
Agriculture Counselor
Located at the U.S. Embassy in The Netherlands
FAS/EMB PSC 71, Box 1000
APO AE 09715
Tel: 31/70/310-9209
Fax: 31/70/361-4688
OTHER CONTACT POINTS
US Government:
Ms. Elena Mikalis
BENELUX Desk Officer
IEP/EUR/OWE Room 3042
Department of Commerce
Washington D.C. 20230
Tel: 202/482-6008
Fax: 202/482-2897
Chambers of Commerce:
Ms. Jo Ann Broger
General Manager
American Chamber of Commerce in Belgium
Avenue des Arts, 50, Box 5
1040 Brussels
Tel: 322/513-6770
Fax: 322/513-7928
Mr. Luc de Wolf
General Director
Brussels Chamber of Commerce
Avenue Louise, 500
1050 Brussels
Tel: 322/648-5002
Fax: 322/640-9328
Belgian Government:
Mr. P. Van Haute
Minister Counselor for Economic Affairs
Belgian Embassy
3330 Garfield Street
N.W. Washington D.C. 20008
Tel: 202/333-6900
Fax: 202/625-7567
Mr. Everarts de Velp
Commercial Attaché
or
Dider Seeuws (for investing in Belgium)
Economic Officer
Belgian Embassy
3330 Garfield Street
N.W. Washington D.C. 20008
Tel: 202/333-6900
Fax: 202/625-7567
Mr. P. Vindelinckx
Director
U.S.A. Department
Belgian Foreign Trade Office
W.T.C. Tower 1, Box 36
Boulevard Emile Jacqmain, 162
1210 Brussels
Tel: 322/209-3511
Fax: 322/217-6123
Regional Governments:
Mr. Robert Collignon
Minister President of the Walloon Region
Rue Mazy, 25-27
5100 Namur
Tel: 3281/33-1211
Fax: 3281/33-1299
Mr. Charles Picque
Minister President of the Brussels Region
Rue Ducale, 7-9
1000 Brussels
Tel: 322/506-3211
Fax: 322/514-4022
Mr. Luc Van den Brande
Minister President of the Flemish Region
Jozef II straat, 30
1040 Brussels
Tel: 322/210-8611
Fax: 322/218-0350
Mr. Jean-Marie Agarkow
Deputy General Manager
Ministry of Wallonia
Office for Foreign Investments
Avenue Prince de Liège 7
5100 Namur
Tel: 3281/32-1453
Fax: 3281/30-6400
Ms. Josée Mercken
Managing Director
FIOC - Flanders Investment Office
Markiesstraat, 1
1000 Brussels
Tel: 322/507-3852
Fax: 322/507-3851
Mr. J.C. Moureau
General Manager
Office for Foreign Investment (Brussels Region)
Rue du Champ de Mars, 25
1050 Brussels
Tel: 322/513-9700
Fax: 322/511-5255
American state offices in Belgium:
ARKANSAS
Avenue Louise 437, Box 4
1050 Brussels, Belgium
Tel: 322/649-6024
Fax: 322/649-4807
Man. Dir.:Ms. Sybille Magee
Marketing Man.:Ms. Beatrice Bouju
Office Man.:Ms. Alice Frijns
GEORGIA
Department of Industry & Trade
Avenue Louise 380, box 2
1050 Brussels, Belgium
Tel: 322/647-7825
Fax: 322/640-6813
Man. Dir.: Mr. James Blair
Deputy Director: Mr. Georges Wheeler
Man. Dir.: Dept of Agric: Mr. James Groark
Asst. Man. Dir. Agric/Dept: Ms. Corry de Wit
Rep. Europ. Office: Ms. Helge Tosti
ILLINOIS
European Office
Blvd. de la Cambre 28-30, Box 2
1050 Brussels, Belgium
Tel: 322/646-5730
Fax: 322/646-5511
Man. Dir.: Mr. Bart A. Smit
Dir. Ind. Dev.: Ms. Sharon L. Stead
Office Manager: Ms. P.M.L. Peake
KANSAS
European Office
Avenue des Arts 41, Box 1
1040 Brussels, Belgium
Tel: 322/505-0911/98
Fax: 322/502-2860
Dir.:Mr. Randy Miller
COMMONWEALTH OF KENTUCKY
326 Avenue Louise
1050 Brussels, Belgium
Tel: 322/645-1642
Fax: 322/646-9934
Dir. Europe: Mr. Paul Pilkalkaus
MARYLAND
European Office of Business & Indust.Dev.
Chaussée de la Hulpe 164 Bte 10
1170 Brussels, Belgium
Tel: 322/675-4480
Fax: 322/675-4858
Europ. Dir.: Mr. Harry Gschwindt de Gyor
Dir. Indust. Dev.: Mr. H. Peter Uebe
European Office of International Trade
Dir. Trade Dev.: Mr. Daniel Verheyen
MICHIGAN
European Office
Rue Ducale 41
1000 Brussels, Belgium
Tel: 322/511-0732
Fax: 322/511-3617
Managing Dir. Europe: Mr. Herbert H. Spaeth
Trade Director: Mr. Dean Johnson
Trade Rep.: Ms. Tiffany Fliss
MINNESOTA
Oppenheimer Wolff & Donnelly
c/o Minnesota Office
Av. Louise 250, Box 31
1050 Brussels, Belgium
Tel: 32/2/626-0500
Fax: 32/2/626-0510
Trade Repr.: Mr. Eric Osterweil
NEW YORK
Lange Repeldreef 12
B-2970 Schilde, Belgium
Tel: 32/3/385-1509
Fax: 323/385-1510
Director of Business Development: Mr. J. Ummo Burns
OHIO
Rue de la Pepiniere 1
1000 Brussels, Belgium
Tel: 32/2/512-8687
Fax: 32/2/512-6614
Managing Director: Mr. Patrick Mahaffey
Commercial Asst.: Ms Kerry Lydon
PENNSYLVANIA
Rue Montoyer 31, Box 4
1040 Brussels, Belgium
Tel: 322/513-7798
Fax: 322/514-2351
Dir.: Mr. Jack L. Worms
Asst. Director: Ms. Irma de Kruijf
UTAH
Rue Emile Dury 220
1410 Waterloo
Tel: 322/351-0075/12
Fax: 322/351-0959
Dir.: J. Carl Walker
VIRGINIA
Av. Louise 479, Box 55
1050 Brussels, Belgium
Tel: 322/648-6179
Fax: 322/648-0698
Dir. Europe: Mr. Hans U. Schetelig
Associations:
F.E.B. (Federation of Belgian Enterprises)
Rue Ravenstein, 4
1000 Brussels
Tel: 02/515.08.11
Fax: 02/515.09.99
George Jacobs, President
The Belgian business federation is a nationwide organization of
employers. It is composed not of individual companies, but of
industrial and trade federations. This is Belgium's biggest association
and represents all employer groups in negotiations with labor unions and
the government.
FABRIMETAL (Federation of Metalworking Industries)
Rue des Drapiers, 21
1050 Brussels
Tel: 02/510.23.11
Fax: 02/510.23.01
Philippe de Buck van Overstraeten, Managing Director and General Manager
This is the largest of the specialized federations and is made up of
firms engaged in all phases of the following sectors: metal working,
plastic conversion, measuring, analysis and regulating instrumentations,
electronics and electrical, aeronautical, telecommunications and data
processing.
FECHIMIE (Federation of Chemical Industries)
Square Marie Louise, 49
1040 Brussels
Tel: 02/238.97.11
Fax: 02/231.13.01
Norbert Martin, President
This federation includes firms in all fields relating to chemicals,
including petrochemicals, drugs, fertilizers, rubber, toiletries,
plastics. etc.
FEBELTEX (Federation of Textile Industries)
Rue Montoyer, 24
1040 Brussels
Tel: 02/287.08.11
Fax: 02/230.65.85
Martin Van Houtte, General Manager
This federation includes the full range of the Belgian textile industry
including synthetics, carpets, cotton and wools.
VLAAMS EKONOMISCH VERBOND (Flemish Economic Union)
Brouwersvliet, 5, Box 4
2000 Antwerp
Tel: 03/202.44.00
Fax: 03/233.76.60
Johan De Muynck, President
V.E.V. is the representative employers federation covering the Flemish
part of Belgium. It is independent of the F.E.B., but cooperates with
it since their activities are parallel. It acts as spokesman for its
members' interests with the Flemish regional authority and tries to
stimulate the Flemish economy by a wide range of different initiatives.
UNION WALLONNE DES ENTREPRISES (Wallonian Enterprise Association)
Rue Stocquoy, 1
1300 Wavre
Tel: 010/45.11.41
Fax: 010/45.33.43
Dominique Collinet, President
This is the equivalent of the V.E.V. for Wallonia.
APPENDIX F. MARKET RESEARCH:
The following industry subsector analyses completed to date in 1995 are
available on the National Trade Data Bank:
1. HOUSEWARES
2. FROZEN FISH/SEAFOOD
3. HOUSEHOLD FURNITURE
4. FAST FOOD FRANCHISING
5. COMPUTER SECURITY
6. ACTIVE MEDICAL IMPLANTS
INDUSTRY SUBSECTOR ANALYSES PLANNED FOR THE REMAINDER OF 1995 AND
THROUGH 1996 INCLUDE:
1. DIAGNOSTIC SUPPLIES
2. HAND TOOLS
3. ELECTRICAL GENERATING EQUIPMENT
4. ISDN AND BROADBAND TECHNOLOGIES
5. CELLULAR TELEPHONY
6. POLLUTION CONTROL EQUIPMENT
7. INTERNETWORKING PRODUCTS AND SERVICES
8. SELLING TO THE TELECOMMUNICATIONS OPERATING COMPANY
9. CONTROLS AND INSTRUMENTATION FOR THE POWER SECTOR
10. EQUIPMENT AND SERVICES FOR UPGRADING/REFURBISHMENT OF POWER
GENERATION FACILITIES
11. SOLID WASTE MANAGEMENT
12. WATER POLLUTION CONTROLS
13. RECYCLING EQUIPMENT
14. PRINTING PRESSES PARTS AND ACCESSORIES
15. SPORTING EQUIPMENT
16. INDUSTRIAL TEXTILES
A COMPLETE LIST OF MARKET RESEARCH IS AVAILABLE ON THE NTDB.
SCHEDULED REPORTS FOR 1995/96 IN THE AGRICULTURAL AREA INCLUDE:
REPORT TYPE
1. AGRICULTURAL SITUATION REPORT ANNUAL
2. FRESH DECIDUOUS FRUIT SEMI-ANNUAL/ANNUAL
3. SUGAR SEMI-ANNUAL/ANNUAL
4. TOBACCO ANNUAL
5. COTTON ANNUAL
6. FOREST PRODUCTS ANNUAL
7. GRAIN AND FEED MONTHLY/ANNUAL
8. OILSEEDS AND PRODUCTS MONTHLY/ANNUAL
9. LIVESTOCK SEMI-ANNUAL/ANNUAL
10.DAIRY ANNUAL
11.POULTRY ANNUAL
APPENDIX G. TRADE EVENT SCHEDULE:
EXPLANATION OF ACRONYMS
CS CATALOG SHOW
FCS FOREIGN COMMERCIAL SERVICE
FBP FOREIGN BUYER PROGRAM
PIP POST INITIATED EVENT
FAS FOREIGN AGRICULTURAL SERVICE
TFO TRADE FAIR OVERSEAS-ORGANIZED
SHOWC SHOWCASE EUROPE
TFW TRADE FAIR WASHINGTON RECRUITED
DATE TITLE TYPE AGENCY SECTOR
1995 EVENTS:
SEP 10-13 DECOSIT,
Brussels TFW FCS Upholstery/Textiles
SEP 12-15 Bobbin Show,
Atlanta FBP FCS Sewn products
OCT 3-6 Pollutec,
Paris FBP FCS Pollution control
OCT 3-11 Int'l Telecom
Exhibition, Geneva FBP FCS Telecommunications
OCT 19-25 Furniture Fair,
High Point FBP FCS Furniture
NOV 8-10 World Energy,
Atlanta FBP FCS Engineering
NOV 13-17 COMDEX fall
(escorted group) FBP FCS Computers
NOV 22-24 Brussels
Travel Fair TFO FCS Travel
1996 EVENTS:
MARCH Eurobenefit II PIP FCS All sectors
MARCH 7 Visit USA
Workshop, Brussels PIP FCS Travel
MAR 20-24 CONEXPO/
ConnAgg Show FBP FCS Building
MAR 20-27 CEBIT,
Hanover FBP FCS Computers
SPRING Energy
US/Eastern Europe FBP FCS Energy
APRIL 2-4 Networld &
Interop, Las Vegas FBP FCS Showcase
APR 22-27 Hanover Fair,
Hanover FBP FCS Energy systems
APR 23-26 European Seafood
Exhibition, Brussels PIP FCS/FAS Seafood
MAY TMAB, Brussels PIP FCS Telecommunications
MAY 20-24 WASTE EXPO,
Las Vegas FBP FCS Environmental
JUNE 5-7 Hazmat,
Philadelphia FBP FCS Environmental
JUN 19-23 ENVITEC FBP FCS Environmental
JUNE 24-27 Supercomm,
Dallas FBP FCS Computers
SEP DECOSIT,
Brussels TFW FCS Upholstery/Textiles
SEP Farnborough
Air Show,
United Kingdom FBP FCS Aircraft, parts
SEP 26-28 Personal Communication
Industry, San Francisco FBP FCS Telecommunications
NOV 19-21 Business Aircraft
Association, Orlando FBP FCS Aircraft
As part of the Showcase Europe "Euroaccess" program, the following is a
listing of 1995 and 1996 trade events located in either Belgium or The
Netherlands, which will be jointly promoted and recruited by the two
posts. Wherever the event is held, an FCS specialist from the other
country will attend the show and advise the American participants on the
rest of the Benelux market. In addition, the non-host FCS post will be
prepared to conduct services for the participants after or before the
actual trade event. In other words, a U.S. company participating in the
telecommunications TMAB event in Brussels in May 1996, could schedule a
gold key or single company promotion, etc. with FCS The Hague to follow
right after or before the Brussels-based event. In this way, a company
could once again explore both markets on one visit, participating in a
trade event in one country and following-up with another market
penetration service in the other country.
--DECOSIT 95: The largest annual furniture upholstery show in Europe
takes place in Brussels, September 10-13, 1995. FCS Brussels in
conjunction with OTEXA is organizing a U.S. pavilion at this major
European showcase for furniture upholstery.
--THE MARCH EUROBENEFIT: The March EUROBENEFIT is a unique horizontal
matchmaker taking place MARCH, 1996, in Amsterdam and Brussels. Each
participant will have two days of meetings with specific end users
and/or distributors interested in the company's product/service.
--THE EUROPEAN SEAFOOD EXHIBITION: The largest annual European Seafood
Exhibition dedicated to seafood will be held in Brussels April 23-26,
1996. Again this year, the organizers will have a U.S. pavilion.
--THE TMAB TELECOMMUNICATIONS SHOW: Taking place during May, 1996 in
Brussels, the TMAB show is the only show in Belgium dedicated to the
telecommunications field. FCS Brussels is organizing a U.S. pavilion
for ten-twelve U.S. companies, which will not only be part of this major
exhibition but which will also have specific one-on-one appointments
with potential representatives.
--INTERCLEAN: The most important exhibition for cleaning equipment and
supplies in the Benelux takes place in Amsterdam, May 7-11, 1996.
During the last show two years ago, the U.S. pavilion featured 45 U.S.
companies.
OTHER NON-AGRICULTURAL BELGIAN TRADE SHOWS OF INTEREST TO U.S. COMPANIES
(NO OFFICIAL USG INVOLVEMENT)
SEP 2-25,1995 BUREAU (office equipment), Brussels
OCT 3-6, 1995 FAIRTEC (European Welding Week), Antwerp
OCT 5-10, 1995 CAD CAM, Kortrijk
OCT 16-18, 1995 INSURTEC (industrial surface welding), Antwerp
NOV 5-9, 1995 SALON DU MEUBLE (furniture), Brussels
NOV 19-23,1995 HORECA (hotel/resturant), Ghent
JAN 27-30 ,1996 TEXTIRAMA (textiles & clothing), Ghent
JAN 17-28, 1996 AUTO SHOW, Brussels
FEB, 1996 MULTIMEDIA & DESKTOP PUBLISHING, Brussels
FEB 29 - MAR 10, 1996 BATIBOUW (building construction), Brussels
MAY 7-11, 1996 EUROTECH (5 industrial sectors), Brussels
JUNE 4-7, 1996 INSTRURAMA (scientific/lab equipment), Brussels
SEP 17-20,1996 INTERLECTRONIC (professional electronics), Brussels
Because trade event schedules may change, please consult the export
promotion calendar on the NTDB or contact Embassy Brussels for the
latest information.
BELGIAN AND LUXEMBOURG FOOD TRADE SHOWS OF INTEREST TO U.S. COMPANIES
(NO OFFICIAL U.S. GOVERNMENT INVOLVEMENT)
November 19-23,1995 HORECA EXPO/GHENT (regional professional fair for
high-value food and beverages
March 24-26, 1996 TAVOLA/KORTRIJK (regional professional food and
beverage fair for hotel, restaurant and cafe industries)
April 21-24, 1996 MONDIAL DU VIN/BRUSSELS (international wine fair)
November 24-28,1996 HORECA EXPO /GHENT (regional professional for high-
value food and beverages)
February 1997 GASTRONOM/BRUSSELS (professional food fair -
consumer ready foods)
February 1997 EUROBA/BRUSSELS (professional European Fair of
basic products and raw materials, semi finished products and equipment
for the bakery, pastry, confectionery, chocolate and ice cream
manufacturing industries)
November 1998 EXPOGAST/LUXEMBOURG (international trade show for
gastronomy)
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