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U.S. Department of State
Portugal Country Commercial Guide
Office of the Coordinator for Business Affairs
P O R T U G A L
C O U N T R Y C O M M E R C I A L G U I D E
FY'96
This Country Commercial Guide (CCG) presents a comprehensive look at
Portugal's commercial environment through economic, political and market
analysis.
The CCG's were established by recommendation of the Trade Promotion
Coordination Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. government agencies.
July, 1995
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
II. ECONOMIC TRENDS AND OUTLOOK
MAJOR TRENDS AND OUTLOOK
PRINCIPAL GROWTH SECTORS
GOVERNMENT ROLE IN THE ECONOMY
BALANCE OF PAYMENTS SITUATION
INFRASTRUCTURE SITUATION
III. POLITICAL ENVIRONMENT
NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES
MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
BRIEF SYNOPSIS OF POLITICAL SYSTEM
IV. MARKETING U.S. PRODUCTS AND SERVICES
DISTRIBUTION AND SALES CHANNELS
USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER
FRANCHISING
DIRECT MARKETING
JOINT-VENTURES/LICENSING
STEPS TO ESTABLISH AN OFFICE
SELLING FACTORS TECHNIQUES
ADVERTISING AND TRADE PROMOTION
PRICING PRODUCT
SALES SERVICE/CUSTOMER SUPPORT
SELLING TO THE GOVERNMENT
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
NEED FOR A LOCAL ATTORNEY
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
BEST PROSPECTS FOR NON AGRICULTURAL GOODS AND SERVICES
BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
SIGNIFICANT INVESTMENT OPPORTUNITIES
VI. TRADE REGULATIONS AND STANDARDS
TRADE BARRIERS
CUSTOMS VALUATION
IMPORT LICENSES
EXPORT CONTROLS
IMPORT/EXPORT DOCUMENTATION
TEMPORARY ENTRY
LABELING MARKING REQUIREMENTS
PROHIBITED IMPORTS
STANDARDS (E.G. ISO 9000 USAGE)
FREE TRADE ZONES/WAREHOUSES
SPECIAL IMPORT PROVISIONS
MEMBERSHIP IN FREE TRADE ARRANGEMENTS
VII. INVESTMENT CLIMATE
OPENNESS TO FOREIGN INVESTMENT
CONVERSION AND TRANSFER POLICIES
EXPROPRIATION AND COMPENSATION
DISPUTE SETTLEMENT
POLITICAL VIOLENCE
PERFORMANCE REQUIREMENTS/INCENTIVES
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
REGULATORY SYSTEM: LAWS AND PROCEDURES
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
BILATERAL INVESTMENT ARRANGEMENTS
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
LABOR
CAPITAL OUTFLOW POLICY
MAJOR FOREIGN INVESTORS
VIII. TRADE AND PROJECT FINANCING
BRIEF DESCRIPTION OF BANKING SYSTEM
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
GENERAL FINANCING AVAILABILITY
EXPORT FINANCE/METHODS OF PAYMENT
PROJECT FINANCING
LIST OF COMMERCIAL BANKS
IX. BUSINESS TRAVEL
BUSINESS CUSTOMS
APPENDICES
APPENDIX A. COUNTRY DATA
APPENDIX B. DOMESTIC ECONOMY
APPENDIX C. TRADE
APPENDIX D. INVESTMENT STATISTICS
FOREIGN DIRECT INVESTMENT
INDUSTRY SECTOR DESTINATION
PORTUGUESE DIRECT FOREIGN INVESTMENT ABROAD
MAJOR FOREIGN INVESTMENT ABROAD
APPENDIX E. U.S. AND COUNTRY CONTACTS
APPENDIX F. MARKET RESEARCH
LIST OF UPCOMING INDUSTRY SUBSECTOR ANALYSIS (ISAS)
LIST OF AVAILABLE IMIS
APPENDIX G. TRADE EVENT SCHEDULE
I. EXECUTIVE SUMMARY
American firms should view Portugal as an attractive market by itself
and as part of the greater European Union (EU) Single Market. It is also
an excellent place to invest in production facilities or to establish
distribution facilities for exports from the United States due to its
competitive costs and excellent communications and access to the EU
market.
As Portugal rapidly integrates into the EU and Portuguese economic
development slowly approaches the level of other economies in the Union,
the number of business opportunities increase and the country becomes a
more attractive destination for exporters and investors. Importation
will grow because industrial modernization requires a larger volume of
machinery, equipment and instruments and consumers require more and
better commodities.
Portuguese domestic industry is relatively unsophisticated and needs to
adjust to the increased competition of the EU. It faces growing threats
to the survival of its large traditional sectors but, in service sectors
such as telecommunications, health, insurance, and banking -- and even
in some areas of the traditional industries -- quick modernization is
taking place.
Assisting the modernization process are EU structural funds, available
as generous incentives, that can range from 25 to 35 percent of the
total investment, to support new domestic or foreign industrial
investment. Between 1994-1999 Portugal will receive USD 20 billion in
structural funds. These funds are deployed in virtually every sector of
the economy. A large proportion is being applied in highways, ports,
subways, and rail lines. These funds are essential to improve the
country's lagging infrastructure and to modernize industry -- and to
sustain economic growth above the EU average.
Portugal's economy is expected to grow by at least 2.5% in 1995, and by
as much as 3.5% over each of the next four years. With sound economic
policies and substantial EU support, the country is making significant
progress in raising its standard of living closer to that of its EU
partners. Recovery from the 1992-93 recession is slow but steady, with
inflation falling under 5%, stable external accounts, and international
reserves equivalent to 20% of GDP. Despite the recovery, however,
unemployment has not fallen, as structural changes in less productive
sectors and rigid labor laws slow employment growth. Although inflation
is relatively low, interest rates remain stubbornly high, reflecting
both the government's tight monetary policy and local market
deficiencies.
The export sector led the 1994 recovery. Firms in traditional
industries -- clothing, footwear, cork and wood products, wine,
porcelain, earthenware, and glassware -- have proven resilient and
expanded production. Other opportunities for growth will continue to
come from large investments in the automotive manufacturing,
construction, and tourism sectors.
Additional growth is likely result from the government's privatization
efforts. To reduce the role of the state in the economy, the government
has pursued structural reform by fully or partially privatizing over 100
state held firms. Over the past 12 months large equity positions in
state-owned firms in the telecommunication, energy, paper and pulp, and
cement industries have been sold.
Both the ruling Social Democratic Party (PSD) and the majority
opposition Socialist Party (PS) are committed to macroeconomic
discipline and structural reform and are likely to maintain current
positive trends despite political pressures leading up to parliamentary
elections in October 1995.
The Portuguese are a people in transition but with sufficient worldly
experience to have confidence in dealing with the future. And they view
Americans as a friendly counter-balance to the friendly (but
overwhelmingly so) Europeans.
American products and services are highly regarded in Portugal. The
"Made in US" tag is a symbol of quality and innovation. However, this
market does not appear on the radar screen of most American firms. The
relatively small overall size of the Portuguese market offers little
incentive to the casual American exporter/investor to investigate
further when, in truth, Portugal is one of the most accessible markets
in the world in key growth areas which match American lead technologies
very closely. American exporters and investors should perhaps be
reminded of the obvious: as a fully-integrated member of the EU,
Portugal abides by the import and investment rules that govern the rest
of the EU...therefore whatever applies in other EU countries applies to
Portugal. If an American firm is mastering the EU regulations prior to
exporting or investing in the EU, it has already done its homework for
Portugal.
Aggressive marketing of carefully selected product lines and maintaining
a knowledge of the Portuguese market and the marketing network is a must
to sustain growth in American market share.
Given the priorities of the EU and the Portuguese government in the
spending of structural funds and considering where U.S. companies have a
clear technological and industrial edge, the following sectors are the
most attractive for US exporters:
- Telecommunications;
- Pollution control equipment/waste management;
- Energy Conservation;
- Medical equipment and health management systems;
- Computers and peripherals;
- Software
In the Agricultural field U.S. products that have high market potential
in Portugal are soybeans, cotton, and hides and skins (including
finished leather). Cotton, hides and skins are Portugal's largest
agricultural imports, and there is scope for expanding the U.S. share of
these markets if U.S. exporters can be more aggressive and price
competitive.
American firms interested in selling in Portugal generally start by
appointing an agent or a distributor. This may be followed by the
establishment of local facilities through wholly owned subsidiaries or
joint venturing or even franchising. Most marketing techniques valid in
other EU countries are valid in Portugal. However, bureaucratic
difficulties, such as those generally experienced with the establishment
of the new firms, may offset early enthusiasm but should not be
permitted to offset the favorable business environment and emerging
opportunities found in this market.
NOTE: Country Commercial Guides 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 Country Commercial
Guides via the INTERNET, please use the following World Wide Web
address: WWW.STAT-USA.GOV.
II. ECONOMIC TRENDS AND OUTLOOK
MAJOR TRENDS AND OUTLOOK
The macroeconomic fundamentals in Portugal remain positive: economic
recovery is slow but steady, inflation remains low, public finances are
stronger than expected, external accounts remain broadly stable, and
international reserves remain high. The main negatives are persistent
unemployment and high real interest rates. These trends are likely to
continue despite political pressures associated with parliamentary
elections in October. Both the ruling Social Democrat Party (PSD) and
main opposition Socialist Party (PS) are committed to fiscal restraint
and monetary discipline in support of a stable exchange rate as part of
Portugal's commitment to economic and monetary union (EMU) of the EU.
The Portuguese economy grew by 1.1 percent in real terms in 1994 after
declining by 1 percent in 1993. Exports led the recovery and investment
kicked in during the second half of the year; domestic demand remained
depressed, however, as high real interest rates and weak real wages
dampened consumer confidence. The economy is expected to expand by 2.5
- 3 percent in 1995 and by 3 - 3.5 percent during 1996 - 1999. Portugal
is making significant progress in raising its standard of living closer
to that of its EU partners. GDP per capita on a purchasing power parity
basis rose to 64 percent of the EU average in 1994 from 51 percent of
the EU average in 1986. Inflation declined from 6.5 percent in 1993 to
5.2 percent in 1994 and 4.7 percent on a 12-month annuallized average
basis in April 1995. The inflation differential over the EU-15 average
declined to 1.5 percentage points in early 1995 from 3 percentage points
in 1993. The disinflationary process continued to depend crucially on a
stable exchange rate and on wage moderation. Portuguese financial
authorities allowed interest rates to rise and intervened in foreign
exchange markets as necessary to keep the exchange rate of the
Portuguese Escudo (PTE) close to its central rate against the German
Mark. Nominal private sector wage settlements averaged 4.9 percent in
the first quarter of 1995 versus 5.2 percent in 1994 and 7.7 percent in
1993. The government made progress in reducing its budget deficit in
1994: it targeted a general government deficit of 6.7 percent of GDP for
1994 and expects the actual deficit to come it at 5.9 percent. It has
set a target of 5.8 percent for 1995. On the negative side, employment
growth has been slow and the unemployment rate has risen to around 7
percent. Flexible real wages limited the growth in cyclical
unemployment during the recession, but structural changes in less
productive agricultural and industrial sectors, plus labor regime
rigidities such as high severance and social costs, have slowed
employment growth during the recovery. Although projected inflation in
Portugal is 4 - 5 percent, commercial lending rates remain at 15 - 16
percent and benchmark long-term bonds are yielding almost 12 percent.
High lending rates reflect both tight monetary policy and local market
deficiencies. High risk premiums on government assets suggest
international investors do not know about Portugal's fundamentals or do
not believe they are sustainable. The government is striving to raise
its profile of good economic performance to differentiate the Portuguese
economy from Spain's and other southern European economies.
PRINCIPAL GROWTH SECTORS
The export sector has led Portugal's economic recovery: merchandise
exports grew by about 10 percent to USD 17.5 billion in 1994 and were
expanding at a 30 percent rate in early 1995 versus 1994. Firms in
traditional industries such as clothing, footwear, cork and wood
products, beverages (wine), porcelain and earthenware, and glass and
glassware have proven resilient and continue to expand production and
exports. The automobile sector entered a new era of expansion with the
opening of the multi-billion dollar AutoEuropa plant on April 26, 1995.
AutoEuropa joint-venture partners Ford and VW expect to steadily
increase production for export to European markets of the Ford "Galaxy"
and VW "Sharan" mini vans at a state-of-the-art plant in Setubal .
Activity in the construction sector strengthened during the second half
of 1994 and early 1995, with sales of cement rising at an 18 percent
rate by May 1995. Public works construction showed particularly strong
growth: the value of awards increased 20 percent in 1994 and 31 percent
in the first quarter of 1995. Construction associated with the building
of the site of the 1998 Lisbon World Exposition (EXPO '98) on the Tagus
river intensified in 1995. The housing sector took off in the latter
part of 1994 and in 1995 -- long-term credit for home mortgages jumped
over 30 percent in the 12-month period ending May 1995. Portugal's
tourist industry continues to expand: in 1993, 21 million tourists
visited Portugal from Spain, the United Kingdom, Germany, France, and
the Netherlands. Privatization efforts in telecommunications, energy
(natural gas), paper and pulp, and cement sectors point to additional
areas of growth in the coming years.
Consumer-Oriented Products: Portugal is a market with strong underlying
demand potential for consumer-oriented products (also called high-value
products). As per capita income grows and Portuguese consumer
preferences become more sophisticated, demand for variety and
convenience in food preparation will take off. The fact that more women
are working outside the home has made these types of foods even more
important in Portuguese daily meal preparation. Even pet food exports
are growing tremendously, in line with unprecedented growth in the
number of pet owners in Portugal and the quality of the pet food that
they demand. U.S. exports of consumer-oriented products have risen
steadily from about USD 3 million in 1989 to a record USD 8.4 million in
1994. Record U.S. exports are expected in 1995 for breakfast cereals,
canned and processed fruit and vegetables, prepared and preserved red
meats, tree nuts, and pet foods. Poultry is another product category
with good market potential here. U.S. exporters of consumer-oriented
products will enjoy increasing opportunities in the Portuguese market,
especially if they are willing and able to respond to requests for
relatively small orders, often from firms that are new to the import
business but are willing to fill the growing market demand here for
unique and high quality food items.
Seafood: There are high expectations for the seafood import market in
Portugal, one of the largest per capita seafood consumers in the world.
All categories of U.S. seafood experienced growth in 1994, combining for
an overall 22.4 percent increase in total U.S. seafood exports during
this period to USD 8.1 million. Portugal is an important potential U.S.
market for many types of seafood products, including cod, hake, squid,
shrimp, crawfish and crabs. In addition, U.S. salmon exports to
Portugal increased by 13 percent in value during 1994 to USD 282,000.
USDA is actively involved in promotion of U.S. seafood products, and
plans are underway to step up its marketing activities over the coming
year.
Coarse Grains: Prior to 1991 Portugal was a strong market for U.S.
coarse grains, particularly corn and sorghum. However, in that year
Portugal began to apply the EU's variable import levy system to its
cereals sector. As a result, U.S. coarse grain exports dropped from
over USD 93 million in 1990 to virtually zero over the following three
years. Fortunately, with the implementation of a 500,000-ton corn quota
for Portugal, U.S. coarse grain exports rebounded dramatically in 1994
to almost USD 50 million. These additional sales have underpinned the
total 9.5 percent increase in U.S. agricultural exports to Portugal in
1994 to USD 227 million. Unfortunately, the market access provisions of
the recent Uruguay Round (UR) Agreement will not likely lead to any
significant expansion in the Portuguese market for feed quality corn.
On the other hand, the UR may open opportunities for increased sales of
higher quality corn used for manufacture of starch and high fructose
corn syrup. In addition, there are possibilities for negotiating an
absolute increase in the current Portuguese corn quota, perhaps as
compensation to the U.S., for trade losses stemming from the accession
of new members to the EU, or for other trade disputes that may arise in
the future.
Wheat: Here again, the application of the EU variable levy system in
1991 wiped out U.S. sales of high-quality milling wheats to Portugal, a
market valued at over USD 21 million in 1990. Nevertheless, U.S. wheat
exports may face good growth opportunities in Portugal as the UR
Agreement is implemented. This agreement should enable U.S. high-
quality milling wheats to compete more readily with the lower quality
soft wheats that are grown in the EU. USDA will also help to expand
this market by sponsoring educational programs in cooperation with the
U.S. wheat industry to reacquaint Portuguese flour millers with U.S.
wheat quality, handling, and milling characteristics. This strategy
should help the U.S. to recover its former share of this important
export market.
Other agriculture: Other U.S. products that have high market potential
in Portugal are soybeans, cotton, and hides and skins (including
finished leather). Soybeans currently comprise the largest single U.S.
export market in Portugal in value terms, and will remain a strong
market into the future. Cotton, hides and skins are Portugal's largest
agricultural imports, and there is scope for expanding the U.S. share of
these markets if U.S. exporters can be more aggressive and price
competitive.
GOVERNMENT ROLE IN THE ECONOMY
Since joining the European Community in 1986, the government has pursued
structural reform to roll back the presence of the state in the economy.
Full or partial privatization of over 100 companies since 1989 has
reduced the weight of the state-owned enterprise sector in the economy
from 20 percent to 10 percent and yielded substantial revenues to the
government. The first phase of privatization -- "de-nationalization" of
the banking and insurance sector -- is virtually complete. The state
presence is now concentrated in oil refining, shipbuilding, steel,
cement, basic chemical products and public utilities such as
telecommunications and energy. The biggest privatization to date -- of
27 percent of Portugal Telecom, the state-owned telephone company --
took place in June 1995 and raised almost USD 1 billion. Other non-
financial privatizations are programmed for the remainder of 1995 and
1996. Nevertheless, the state's continued role as both owner/operator
and regulator of public utilities in particular has resulted in high-
cost and inefficient public services for consumers and businesses. In
addition, government bureaucracy remains burdensome and commercial legal
channels are still very slow. It can take a few months to complete all
the steps the government requires to form a company. Two-thirds of all
civil cases, many of them commercial disputes, take more than two years
to resolve. The government maintains a rent control system which allows
an estimated 80 percent of housing units to be rented at below-market
value.
The general government deficit is declining, but is still large enough
at 5 - 6 percent of GDP to raise doubts about the seriousness of the
government's commitment to sustained fiscal prudence. The government's
1995 budget sharply increases investment spending, cuts current
spending, and broadens the tax base in an effort to reduce the general
government deficit to below the 5.8 percent of GDP target in 1995.
BALANCE OF PAYMENTS SITUATION
Portugal traditionally runs a large merchandise trade deficit, which it
finances through large net receipts from tourism, remittances from
Portuguese workers abroad, and net transfers from the European Union.
The trade deficit of about USD 7.5 billion remained stable at about 8.5
percent of GDP in 1994, but delays in transfers from the European Union,
plus lower receipts from tourists and emigrants, caused the current
account to fall into deficit equivalent to 1 - 2 percent of GDP in 1994
versus a small surplus in 1993. Merchandise exports (textiles,
clothing, footwear, electrical machinery, wood and cork, industrial
chemicals) rose to USD 17.5 billion while imports (vehicles, machinery,
appliances, chemicals, and food) rose to USD 24.1 billion. Portugal's
footwear exports rose to about USD 1.7 billion in 1994 from under USD
300 million in 1984. Net tourism income fell to about USD 2 billion and
workers' remittances to about USD 3 billion in 1994. Portugal's capital
account also registered substantial net outflows in 1994 as foreign
investors reduced holdings of domestic securities and foreign borrowing
dropped sharply. The Bank of Portugal reduced its foreign exchange
reserves by USD 1.7 billion during 1994 and they stood at USD 21.3
billion at the end of December. Total (public and private sector)
external debt of USD 17 billion was 85 percent of foreign reserves, and
public external debt of USD 2.1 billion was 12 percent of foreign
reserves in May 1995. Even so, speculation against the Escudo in the
context of the Mexican crisis and political uncertainty in both Spain
and Portugal in February and March of 1995 required substantial Bank of
Portugal intervention and caused a decline in reserves to USD 20.6
billion by the end of May.
INFRASTRUCTURE SITUATION
Portugal is rapidly improving its road, energy, and sanitation
infrastructure with substantial structural funds from the EU. Between
1994-1999 Portugal will receive USD 20 billion in structural funds.
These funds are deployed in virtually every sector of the economy. A
large proportion is being applied in highways, ports, subways, and rail
lines.
The ten top infrastructure projects underway with large EU funding
include:
Under Way:
Expo '98 (USD 1.2 Billion)
New Tagus river bridge (USD 980 million)
Northern rail line modernization (USD 700 million)
Transgas-natural gas pipeline (USD 1.3 Billion)
Porto subway (USD 500 million)
Lisbon Subway (USD 1.4 Billion)
Low-cost housing (2 billion dollars)
Alqueva dam (380 million dollars)
Proposed:
Lisbon airport (USD 800 million)
Odelouca dam (99 million dollars)
American equipment and services enjoy an excellent reputation and have
numerous opportunities in the modernization of the Portuguese economy.
Aggressive marketing of a carefully selected product line is a
necessity.
III. POLITICAL ENVIRONMENT
NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES
Bilateral relations between the United States and Portugal are
excellent, characterized by shared democratic values and similar foreign
policy perspectives. Ties between the two countries are strengthened by
the approximately two million Americans who claim Portuguese descent.
Portugal has traditionally been Atlanticist in its orientation. A
charter member of NATO, Portugal is a strong proponent of active
American involvement in European security affairs. The United States
has maintained a military presence in the Azores, an autonomous region
of Portugal, since World War II.
MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
The Parliamentary elections scheduled for October of 1995 and the
Presidential are scheduled for early 1996 are the major issues affecting
the business climate. Generally during election periods all business
tend to slow down and the involvement of the Portuguese government in
the economy, in spite of the large number of privatizations, exacerbates
the trend.
BRIEF SYNOPSIS OF POLITICAL SYSTEM
Portugal is a stable parliamentary democracy with a directly-elected
president who wields significant authority, including that of appointing
the prime minister and the cabinet. In appointing the government, the
president must be guided by the results of the legislative assembly
elections. The prime minister is responsible for managing Portugal's
domestic and foreign policy, except in a few issue areas where the
constitution gives the president direct responsibility.
Currently, the president and the prime minister are of different
parties. The president, Mario Soares, formerly led the Socialist Party.
The prime minister, Anibal Cavaco Silva, leads the Social Democratic
Party, which enjoys a substantial majority (135 out of 230 seats) in the
unicameral assembly of the republic. Parliamentary elections are
scheduled October 1, 1995. Under certain circumstances defined by the
constitution, the president could dissolve the parliament and call early
elections, but there is little reason to expect him to do so.
Presidential elections are scheduled for early 1996.
The governing Social Democratic Party (PSD) is a broad coalition
spanning the center left to the center right. It has pursued an active
program of privatization and liberalization of the economy. The main
opposition party, the Socialist Party (PS), competes with the social
democrats for centrist and center-left voters, and has not opposed the
broad outlines of the privatization program. On the extreme left, the
old-line communist party (PCP) regularly polls about 10 percent. On the
right, the center democrats (CD) advocate economic liberalism. Their
share of the electorate has fluctuated in recent years between 4 and 15
percent.
IV. MARKETING U.S. PRODUCTS AND SERVICES
DISTRIBUTION AND SALES CHANNELS
The Portuguese population is concentrated on the coast. The major
distribution centers are Lisbon in the South and Oporto in the North
though the regional centers of Braga ( north of Oporto) and Setubal
(South of Lisbon) have come much into their own in recent years. The
Lisbon region accounts for 21% of the Portugal's population with 63%
employed in services and 33% employed in industry. Major industries as
well as the head offices of large corporation are located here. Most
financial institutions have also chosen Lisbon to locate their
headquarters. The Lisbon area has the highest purchasing power in the
country and suffers like many metropolitan areas from traffic congestion
and rising costs. Oporto is the most dynamic industrial development area
in Portugal. It accounts for 16% of the Portuguese population and is
also an area of high purchasing power. Oporto is now connected to Lisbon
by a new motorway and a new bridge over the Douro river. The coastal
region between these two, and extending into Braga and Setubal, is where
the large majority of Portuguese industries are located.
Portugal is a relatively small country and most sales channels cover the
entire territory. Distribution centers tend to be located in Lisbon and
Oporto. However, many large importers and wholesalers have branch sales
offices and/or sub-agents or dealers in the principal cities and towns,
including those of the Portuguese islands of Madeira and the Azores.
USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER
American firms interested in selling in Portugal generally start by
appointing an agent or distributor. This may be followed by the
establishment of local facilities through wholly owned subsidiaries or
joint venturing. Most manufacturers/exporters are commonly represented
in the market through exclusive importers/ distributors who may appoint
sub-distributors and dealers.
Generally agent/distributors who operate a sales network that covers the
entire country expect exclusive representation agreements. They tend to
be quite specialized in their respective market segment. It is often the
case that an American firm offering a wide range of products may require
representation in the Portuguese market by different local firms
depending on the particular product.
So far, large retail stores (that for many years were a rarity in
Portugal) and the few recently opened large department stores are
growing very quickly. This may be an alternative sales channel for some
products. Some of these organizations buy/import directly and generally
do not raise problems of financial/credit reliability.
Portuguese law distinguishes two types of distribution contracts: agency
agreements and commercial concession agreements. Generally,
relationships established between American and Portuguese companies,
with or without a written agreement, meet the requirements of the
Portuguese law. However, a good Portuguese agent/distributor respects
any informal type of commercial agreement made with his suppliers. As a
EU country Portugal is subject to the EU directive 86/653/CEE which
protects commercial agents in their relations with the companies for
which they work.
The Commercial Service-CS at the American Embassy in Lisbon can help
American exporters find a partner in Portugal. The services offered in
Lisbon include all the export assistance core programs of the United
States Department of Commerce. They are targeted at the development of
sales leads or finding potential partners and have a low cost. Services
specially offered by the CS Lisbon include "Portugal Express", a fast-
track program combining in-depth market reports with videoconferencing
capabilities that enhances the delivery of information on market
opportunities, otherwise available through slower and costlier means.
Another electronic-age service is an on-line database, "FocUS-EUrope",
with nearly all the information available from the Commercial Services
office at the Embassy once only accessible through conventional means -
- phone, fax, correspondence. Of course, personalized consultancy
tailored to the needs of small and medium sized exporters is also
available to US companies interested in exploring the growing potential
of the Portuguese market.
FRANCHISING
Franchising is a relatively new word in the Portuguese commercial
vocabulary. It was the last of the retail trade systems but its growth
has been very rapid since 1989 and brought a new vigor to the retail
market. The first franchises were non-food stores, especially clothing,
followed by food stores, and then cosmetics and other businesses which
now have a presence in the key commercial centers.
Like in many European countries Portugal does not have legislation
covering franchising. If any of the parties is a foreign resident and
establishes a local branch or subsidiary, the contracts and agreements
are treated as a foreign investment and should be submitted to the
Portuguese Institute of Foreign Trade (ICEP) for approval. Otherwise,
franchising agreements may be freely established between the parties
(franchisor and franchisee).
Because there is no specific regulation, franchising is considered a
complex juridical relationship ruled by local laws (civil, commercial,
intellectual and industrial property rights and competition, etc.) and
European Union Law. Franchising contracts and agreements should also be
drawn up in accordance with the fact that the Portuguese Association of
Franchising adopted the Deontology Code of the European Federation of
Franchising.
DIRECT MARKETING
Since 1990 mail order and TV-sales have become a distinctly effective
direct marketing method and have experienced rapid growth. Between 1990
and 1993 sales growth was estimated at about 12% a year and presently
there are 43 direct marketing firms in the market. The most popular
direct marketing sectors are selected wines (27% of sales), books,
instruction/training and amusement materials (26% of sales) and apparel
and clothing (23% of sales). Other successful areas are housewares,
perfumes and cosmetics and art/collection products.
The expansion of this type of marketing has not been greater because
Portuguese mailing expenses are still too high and because relevant
regulations and laws have not been adequately imposed and Portuguese
consumers do not feel adequately protected. The Portuguese
regulations/laws themselves are considered adequate but inspection and
controlling authorities have found some difficulties with its
implementation when there are controversial problems.
Direct marketing is increasing in importance as a sales instrument and
expands every year to new areas of activity from "on-line" shopping for
groceries to office supplies and computer accessories.
JOINT VENTURES/LICENSING
Joint ventures and licensing are alternative ways to enter the
Portuguese market. Joint ventures are a form of foreign investment which
can also be wholly owned. In most cases, the investor is not required
to have a Portuguese partner, but it may be desirable. Investments can
inject capital into an existing enterprise or create a new one.
Portuguese law, with certain exceptions, generally places all firms,
both domestic and foreign owned, on an equal footing with respect to tax
treatment and incentives. Prospective investors must submit project,
(including joint venture proposals to the Portuguese Institute for
Foreign Trade (ICEP). If ICEP does not respond within 2 months,
automatic approval is assumed.
Special regulations apply to investment in government-owned or jointly-
owned companies. State-owned monopolies are being eliminated. Certain
sectors will continue to be government-controlled such as mail, water
distribution, sewage, rail service, airport and port authorities,
armaments and telecommunications.
Licensing is a contractual arrangement in which the licensor makes
available or sells its know-how, patents, trademarks or copyrights to a
licensee for compensation. Franchising is an important form of
technology licensing and the above discussed conditions and legal
environment of its use and application in Portugal can be generalized
for licensing in general.
In closing, regarding licensing factors in Portugal, American firms
should perhaps be reminded of the obvious: as a fully-integrated member
of the EU, Portugal abides by the import and investment rules that
govern the rest of the EU...therefore whatever applies in other EU
countries applies to Portugal. If an American firm is mastering the EU
regulations prior to exporting or investing in the EU...it has already
done its homework for Portugal. However, enforcement of some
intellectual property rights laws is still weak.
STEPS TO ESTABLISH AN OFFICE
To establish an office in Portugal, that is, to create a new Portuguese
company recognized as such under Portuguese law may be a process that
offers some difficulties to a foreigner however it is not so difficult
if some simple steps are followed. Any US entity interested in
establishing a company in Portugal should visit and discuss the project
with both the CS of the American Embassy in Lisbon and the ICEP-
Portuguese Institute of Foreign Commerce.
Generally the below listed steps required to establish a company in
Portugal should be taken with the assistance of a documentation agent
(an individual or company specialized in handling administrative
procedures to obtain legal documents) or a lawyer. Following are the
steps necessary to establish a company in Portugal:
- Apply for a name ( which may be the parent company name in the United
States), a certificate of approval and a provisional I.D. card at the
RNPC-Registo Nacional de Pessoas Colectivas (National Companies Registry
Office).
- File a declaration of intent to invest foreign capital in Portugal at
ICEP-Instituto do Comercio Externo de Portugal (Portuguese Institute of
Foreign Commerce).
- Deposit a copy of the company's contract (memorandum and articles of
association) at a Notary Public for evaluation.
- Open a bank account in the name of the new company being created and
deposit its initial capital (registered capital) in one of the branches
of CGD (Caixa Geral de Depositos).
- Sign the company's contract at a Notary Public.
- Have the company's contract published in the Official Bulletin (Diario
da Republica) and also in a local newspaper.
- File a declaration of activity commencement at the local revenue
office.
- Apply to register the company at the RNPC and request a definitive
I.D. Card. Register the company also at the Commercial Register (CRC-
Conservatoria do Registo Comercial)
- Industrial activities must be licensed by any delegation of the
Ministry of Industry co-located at one of the five Regional Coordinating
Committees of the national government. Commercial activities generally
do not require licensing. For commercial activities related to public
health or security a license must be issued by the DGC-Direccao Geral do
Comercio (General Directorate for Commerce).
- Register the company at the local Social Security Regional Center.
- Have the company's work schedule approved at the Ministry of
Employment and Social Security.
- Register the company's accounts records at the local Revenue Office,
at the Court and at the Bankruptcy Office.
- Additional requirements may apply: mandatory insurance, registration
of employees at Social Security and the registration of any foreign
workers at the Ministry of employment and Social Security.
SELLING FACTORS/TECHNIQUES
Portugal is an old country where modern techniques coexist with
traditional practices. Modern sales techniques are generally accepted
and effective but traditional values continue to be respected. Many
businessmen still consider that a personal contact and a handshake
stronger than a contract.
Portuguese consumers have seen their purchasing power increase every
year and increasingly buy on impulse. Direct sales, large hypermarkets
and commercial malls are buying habits. For consumer goods the decisive
selling factors may be price, quality, brand name or the product's
innovative features. However, the institutional buyer is quality
conscious and very sensitive to pricing. These characteristics and its
market size sometimes make Portugal a difficult market for some American
exporters. However, a good understanding of market channels and the
requirements for developing markets of opportunity should lead to very
profitable segments or niches for the American exporter.
ADVERTISING AND TRADE PROMOTION
Like in all Western countries some of the preferred techniques to reach
Portuguese buyers effectively are advertising and trade promotions.
Portugal offers a reasonably priced market in which to advertise.
Advertising media is the same as in the majority of developed Western
countries. Newspapers, magazines, TV and more recently advertising in
automatic bank teller machines are the most popular.
In Portugal there are a number of specialized international trade shows.
Following are some of the major newspapers and business journals:
- PUBLICO (daily)
Comunicacao Social, SA
Direccao Editorial e Administrativa
R Amilcar Cabral, Lote 1
1700 Lisbon, Portugal
Tel: (351-1) 759 95 59
Fax: (351-1) 758 71 38
- DIARIO DE NOTICIAS, SA (daily)
226 Av. da Liberdade
1200 Lisboa, Portugal
Tel: (351-1) 355 84 14
Fax: (351-1) 52 15 07/352 48 95
- JORNAL CORREIO DA MANHA (daily)
R Mouzinho da Silveira, 27
1200 Lisboa, Portugal
Tel: (351-1) 52 75 23
Fax: (351-1) 352 82 56
- JORNAL O PRIMEIRO DE JANEIRO (daily)
R Carmo 101, 2º
1200 Lisboa, Portugal
Tel: (351-1) 346 56 15
Fax: (351-1) 342 35 36
- JORNAL DE NOTICIAS (daily)
R Goncalo Cristovao, 195/219
4000 Porto, Portugal
Tel: (351-2) 200 94 09
Fax: (351-2) 202 30 13
- JORNAL EXPRESSO (weekly)
R Duque de Palmela, 37 - 2º
1200 Lisboa, Portugal
Tel: (351-1) 352 61 41
Fax: (351-1) 352 24 10
- JORNAL O INDEPENDENTE (weekly)
Av. Casal Ribeiro, 14 - 3º
1000 Lisboa, Portugal
Tel: (351-1) 315 05 23
Fax: (351-1) 315 43 60
- JORNAL SEMANARIO (weekly)
Av. 24 de Julho, 6
1200 Lisboa, Portugal
Tel: (351-1) 60 40 03
Fax: (351-1) 395 13 75
- JORNAL VIDA ECONOMICA
Cp. Grande, 50 - 5. Esq.
1000 Lisboa, Portugal
Tel: (351-1) 793 77 48
Fax: (351-1) 793 77 51
- SEMANARIO ECONOMICO (weekly)
R. St. Marta, 47
1100 Lisboa, Portugal
Tel:(351-1) 352 18 73
Fax:(351-1) 352 53 39
- REVISTA VALOR
S.T. & S.F., Sociedade de Publicacoes, Lda
R. D. Filipa de Vilhena, 4 - 5º esq.
1000 Lisboa, Portugal
Tel: (351-1) 315 08 85
Fax: (351-1) 315 51 87
- REVISTA VISAO
Av. Liberdade, 232
1200 Lisboa, Portugal
Tel:(351-1) 315 47 44
Fax:(351-1)
PRICING PRODUCT
Pricing a product is very important since it influences the evaluation
of its attractiveness in this market. Pricing is the most common reason
why a number of American products offered in Portugal are not
competitive. Pricing of American products as now practiced tends to
directly reflect the dealer's price in the United States which often
includes marketing overhead that : 1) must be recalculated downwards to
properly account for actual expenses in the Portuguese market; 2) must
not be a "double-counted" expense-- that is, the adding of Portuguese
marketing expenses on top of "built-in" American marketing expenses.
The most appropriate method of pricing a product for the Portuguese
market is marginal cost pricing. This would be the marginal unit cost of
production in the United States plus Portuguese market-specific costs
associated with overseas promotion, labeling and packaging expenses. To
this would then be added a profit margin which, when added to the other
pricing components, would still render the product competitive.
Portuguese importers currently accept the more common terms of
international trade (C.I.F, C.&F., F.A.S., F.O.B. or Ex point of
origin). They prefer to receive C.I.F. quotations or at least F.O.B.
quotations including detailed product descriptions, gross and net
shipping weight, volume and time of shipment (from where the delivery is
made) and delivery. Proforma invoices with all the above details are not
mandatory but are advisable.
SALES SERVICE/CUSTOMER SUPPORT
In Portugal there are no rules or current practices regarding sales
service/customer support. It is the special nature of the American
product or service exported that decides the desirability of this
support. However, in representation/agency/distributorship agreements,
sharing promotion expenses and cooperating in marketing strategies or
technical assistance is most desirable.
SELLING TO THE GOVERNMENT
Portugal follows the EU directive to the GATT Procurement Code but has a
derogation covering utilities such as water, transportation, energy and
telecommunications. Portugal also ratified the decisions of the Uruguay
Round, regarding government procurement. The derogation was maintained
in the text except for telecommunications (where there was no agreement
between the United States and the EU). The derogation will be maintained
through January 1, 1998.
Depending on the amount, government procurement may be made by direct
consultation, national or international tenders. National and
international tenders are published in the Portuguese Official Journal
(Diario da Republica, Series III) and in the two largest daily
Portuguese newspapers. International tenders are also published in the
EU Official Journal (Series F).
PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
1. Intellectual Property Rights: Copyright and Trademark Protection
In 1989 Portugal was placed on the "watch list" under the "special 301"
provision of the 1988 Trade Act for not providing adequate intellectual
property protection. Following implementation of a registration and
stamp system for audio and video tapes, Portugal was removed from the
"watch list" in 1990.
Software copyright legislation (Law 109/91) was published in the Diario
de Republica (Official Gazette) on August 17, 1991, and entered into
force in December 1991. This legislation provides for various civil and
criminal sanctions for the unauthorized reproduction of software.
Sanctions range from fines to up to three years of imprisonment. The
Portuguese Association of Software Distributors (ASSOFT) has undertaken
an active campaign to publicize the new law and is optimistic that sales
of authorized software will continue to increase significantly.
Enforcement of anti-piracy law has been weak.
The United States will monitor the enforcement of new and emerging anti-
piracy laws to ensure that copyrights and trademarks are respected.
2. Patents
Consistent with a commitment made when joining the EU, the Government of
Portugal published on August 30, 1991 Decree 52/91 which ratified the
Munich Convention of European patents. The Government is revising the
Industrial Code with the stated intention of providing product patent
protection.
NEED FOR A LOCAL ATTORNEY
Using an attorney is not mandatory to do business in Portugal. Most
transactions can be accomplished without an attorney including the
establishment of small non-complex businesses. Attorneys are recommended
to solve some types of trade disputes and for the establishment of local
offices as direct investment in joint-venture with local entities or as
a 100 percent subsidiary. For some complex types of licensing,
representation/distribution and franchising an attorney is also
recommended to assure compliance with local law.
V. LEADING SECTORS FOR US EXPORTS AND INVESTMENT
BEST PROSPECTS FOR NON AGRICULTURAL GOODS AND SERVICES
(US$ million, unless otherwise noted)
01 - COMPUTER SOFTWARE (CSF)
NARRATIVE:
Portuguese demand for Computer Software, $181 million in 1994, should
continue to experience a high growth rate reaching a 40% annual average
for the next three years. These optimistic projections reflect a
progressive decrease of piracy which results from the growing legal
protection to software copyrights. Sixty-two percent of Portuguese
demand is met by imports. U.S. import share was 36% in 1994 but the
estimated real market share of U.S. trade marks, some of which are
imported from European subsidiaries, is about 75%. Three U.S. companies
are among the 10 largest Computer Software companies in Portugal
controlling about 40 percent of the total market in 1994.
Most promising subsectors within the sector and corresponding market
size (1996 estimate) are:
- Applications for financial institutions,
especially integrated financial systems: 107
- Manufacturing applications, especially CAD/CAM
and production control: 28
DATA TABLE:
1994 1995 1996
A) Total Market Size: 241 301 378
B) Total Local Production: 73 91 115
C) Total Exports: 13 16 20
D) Total Imports: 181 226 28
E) Imports from the U.S.: 59 74 93
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
02 - EQUIPMENT AND SERVICES FOR UPGRADING/
REFURBISHMENT OF POWER GENERATION FACILITIES (ELP)
NARRATIVE:
The European Union will fund for a period of five years 1994/1999 an
Energy Program in order to develop alternative sources of energy in
Portugal. The funds allocated to this program total about USD 1.2
billion, composed of approx. USD 429 million from the European Union,
USD 36 million from the Portuguese Government, USD 419 million from
public companies and USD 320 million from the private companies.
The goals of this Energy Program are to ensure that the Portuguese
energy supply system runs properly and with reasonable prices; reduces
Portuguese energy imports and increases the use of local renewable and
new energy sources; reduces the use of oil as an energy source and finds
new sources of energy including natural gas; encourages, through
incentives, energy conservation and rationalization in all sectors of
activity; reduces environmental problems caused by energy production and
energy consumption and improves efficiency of the Portuguese national
system by offering products and services. The Program emphasizes four
areas: endorsement of existing public natural gas and electricity
distribution systems, use of new sources of energy, energy saving and
management and private initiatives. The Portuguese Energy Department
encourages the private construction of small hydro electrical generating
units up to 10 MW located close to industrial areas. The private owners
of these mini-hydro units will then be able to sell the produced energy
to the state-owned electrical company EDP, soon to be privatized, or to
near-by industrial plants.
DATA TABLE:
1994 1995 1996
A) Total Market Size: 58 69 75
B) Total Local Production: 11 13 14
C) Total Exports: 8 9 11
D) Total Imports: 55 65 72
E) Imports from the U.S.: 6 8 10
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
03 - MEDICAL EQUIPMENT (MED)
NARRATIVE:
Portugal is upgrading and modernizing old hospitals and building new
ones. This creates opportunities for exporters of medical equipment.
The Portuguese government plans to invest about USD$300 million per year
in new health care infrastructure (hospitals, clinics and health care
centers) over the next 7 years. There are private hospital projects
totalling USD180 million over the next 4 years. The U.S. share has been
about 11 percent, with Germany as its principal competitor. However,
U.S. products enjoy an excellent reputation and imports from U.S. could
rapidly gain a higher share with more intense marketing.
Most Promising Subsectors within the sector and corresponding market
size (1996 estimate) are:
- Patient monitoring systems/apparatus 49
- Orthopedic apparatus 29
DATA TABLE:
1994 1995 1996
A) Total Market Size: 159 192 238
B) Total Local Production: 46 55 66
C) Total Exports: 70 84 93
D) Total Imports: 183 221 265
E) Imports from the U.S.: 23 31 37
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
04 - POLLUTION CONTROL EQUIPMENT (POL)
NARRATIVE:
Since 1993, all new cars purchased in EU are required to have catalytic
converters. Environmental prevention and water purification are getting
more and more attention from Government and private entities.
Accordingly, best sales prospects for U.S. exporters include filtering
or purifying machinery and apparatus, sensors and analyzers, recycling
equipment, and heavy metal collecting equipment. This market
opportunity should be considered within a far larger demand for
environmental technologies and equipment (including engineering
services) funded by the European Union at about $700 million a year for
seven years beginning in January 1994.
Most Promising Subsectors within the Sector, along with estimated 1996
total market size of each subsector (US$ million):
- Filtering and Purifying Machinery and Apparatus 90
DATA TABLE:
1994 1995 1996
A) Total Market Size: 105 120 133
B) Total Local Production: 16 20 23
C) Total Exports: 10 14 15
D) Total Imports: 99 114 125
E) Imports from the U.S.: 5 6 8
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
05 - HEAVY CONSTRUCTION EQUIPMENT (CON)
NARRATIVE:
Construction activity is accelerating with sales of cement up 6.4
percent in the second half of 1994 and 15 percent in the first two
months of 1995. Public works construction projects show particularly
strong growth, the value of awards increased 20 percent in the first
half of 1995 compared to the same period in 1994. Over the past five
years the construction sector accounted for 6.2 percent of the GDP.
Companies are confident that they will get a large share of the approved
USD 19 billion European Union development assistance program covering
the 1994-1999 period. Several large projects will take place in 1995 and
in the following years, which are: new highways and road renovation, the
new Tagus bridge, a second railway deck for the 25 of April bridge, Expo
'98, Alqueva Dam, the natural gas pipeline, Oporto subway, Lisbon subway
renovation, and sewage and water treatment plants. Construction of new
public hospitals and several private clinics are also planned.
Construction of a new Lisbon airport slated for 2010 is being planned.
Commercial building and house construction are up, as well.
DATA TABLE:
1994 1995 1996
A) Total Market Size: 94 99 105
B) Total Local Production: 11 13 16
C) Total Exports: 5 6 7
D) Total Imports: 18 92 96
E) Imports from the U.S.: 11 13 16
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
06 - TELECOMMUNICATIONS EQUIPMENT (TEL)
NARRATIVE:
The Government is deregulating and privatizing the USD2 billion
telecommunications market. Modernization is quickly taking place in the
sector: investments of USD500 million per year started in 1994 and will
continue at the same pace until 1999. Portugal is expected to reach the
European Union average level of telephones per capita with 35/45
telephones per 100 inhabitants by 1995. In 1992, the first two private
television stations began operations, a U.S.-Portuguese consortium
launched a pan-European cellular telephone network and several other
"Value Added Services" such as paging, trunking, data communications and
audio services were liberalized. Cable TV operations were regulated.
Some private companies have already obtained licenses and are presently
starting operations.
Basic telephone services were just privatized in about 28%. Foreign
investment is not expected to reach over 25% after the selection of a
strategic partner (which is not expected to have more than 15%) is made.
The growth rate in the sector has been about 20 percent annually and
major opportunities exist for both investment or exportation of
telephone switching equipment and radio/television broadcasting
equipment which conform to AWEIGH standards.
Most Promising Subsectors within the sector and corresponding market
size (1996 estimate) are:
- Telephone switching systems 181
- Cellular Telephones 37
DATA TABLE:
1994 1995 1996
A) Total Market Size: 481 591 697
B) Total Local Production: 78 101 119
C) Total Exports: 15 22 26
D) Total Imports: 418 512 604
E) Imports from the U.S.: 23 27 33
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
07 - MARINE FISHERIES PRODUCTS (SEAFOOD) (MFI)
NARRATIVE:
Portuguese demand for seafood is growing very quickly along with the
purchasing power of the population. Seafood was always an important
part of the Portuguese diet. Production (landings) now cover about 23%
of demand but it is decreasing and most of it is exported. Consumers
traditionally have preferred fresh fish but are changing their habits.
They have come to accept more frozen products of species new to them.
There is greater acceptance of imported seafood of all kinds but the
most promising sectors are the traditional dry salted cod and the squid.
International cod fishing restrictions have denied Portuguese high sea
fishing fleets access to traditional fishing grounds (i.e. the Grand
Banks of Canada) which makes supply of cod from other sources, such as
American Pacific cod, a natural substitute for this still very large
fish- consuming market.
Most Promising Subsectors within the sector and corresponding market
size (1996 estimate) are:
- Cod, fresh and dried 462
- Lobster and crab 26
- Squid 17
- Shellfish 75
DATA TABLE:
1994 1995 1996
A) Total Market Size: 716 800 885
B) Total Local Production: 169 182 201
C) Total Exports: 110 118 137
D) Total Imports: 657 736 821
E) Imports from the U.S.: 10 12 13
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
08 - LABORATORY AND SCIENTIFIC INSTRUMENTS (LAB)
NARRATIVE:
There should be healthy grow in the pharmaceutical, food processing and
biotechnology industries. Another very fast growing area will be
environmental and pollution monitoring and quality control. New
materials research, process control, and private testing laboratories
are a growing market. Accordingly there will be an increasing market
for U.S. analytical instruments.
Most Promising Subsectors within the Sector, along with estimated 1996
total market size of each subsector
(U.S. $ million):
- Analytical Instruments 65
- Measuring and Controlling Instruments 198
DATA TABLE:
1994 1995 1996
A) Total Market Size: 335 350 402
B) Total Local Production: 35 20 27
C) Total Exports: 5 5 5
D) Total Imports: 305 335 380
E) Imports from the U.S.: 47 51 56
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
09 - COMPUTERS AND PERIPHERALS (CPT)
NARRATIVE:
The United States dominates --- through the sale of American brands ---
the rapidly growing computer market in Portugal and maintains a share of
about 70% of total demand. The 10% share of direct imports from the
United States reflects a 2% growth and is so small because many U.S.
trademark products are shipped through Europe and other areas into
Portugal and are not regarded as direct U.S. imports into the country.
For several years, the U.S. consistently lost its share of the market
because of the greater aggressiveness of Far Eastern countries.
However, this trend has slowed even with the negative impact of the
dollar exchange rates during 1994. Portuguese buyers regard U.S.
equipment favorably.
Most Promising Subsectors within the sector and corresponding market
size (1996 estimate) are:
- Digital ADP machines with CPU and input/output in the same housing
(HTS=847120) 89
- Digital Processing Units with storage,
input or output (HTS=91) 207
- Card key and magnetic media entry devices and optical
scanners and inc recognition devices (HTS= 8471929) 107
DATA TABLE:
1994 1995 1996
A) Total Market Size: 544 549 566
B) Total Local Production: 56 60 67
C) Total Exports: 41 43 45
D) Total Imports: 529 532 544
E) Imports from the U.S.: 51 52 54
Exchange rate: 165.9
Import and export statistics for 1994 were provided by ICEP-Instituto do
Comercio Externo de Portugal (the Portuguese Foreign Commerce
Institute). All other statistics are unofficial estimates.
BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
(1,000 Metric Tons)
- CORN
NARRATIVE:
U.S. corn exports to Portugal have been restricted since 1991 because of
"Community preferences". Now, with the re-opening of the Portuguese
corn market to third countries through the new 500,000 metric tons
quota, U.S. exports are regaining this market to almost its previous
historic levels. France is the major U.S. competitor.
DATA TABLE:
1994 1995 1996
A) Total Market Size: 1,711 1,616 1,616
B) Total Local Production: 666 519 539
C) Total Exports: 3 3 3
D) Total Imports: 1,048 1,100 1,080
E) Imports from the U.S.: 427 430 430
Import and export statistics for 1994 were provided by INE-National
Statistics Institute. All other statistics are unofficial estimates.
- CORN GLUTEN FEED
NARRATIVE:
Market opportunities for U.S. exporters remain bright for CGF as this
commodity is tariff-exempt and is favored by animal feed producers for
its high protein levels.
DATA TABLE:
1994 1995 1996
A) Total Market Size: 541 566 594
B) Total Local Production: - - -
C) Total Exports: 4 4 6
D) Total Imports: 545 570 601
E) Imports from the U.S.: 545 570 601
Import and export statistics for 1994 were provided by INE-National
Statistics Institute. All other statistics are unofficial estimates.
- SOYBEANS
NARRATIVE:
Prospects for U.S. soybean exports to Portugal remain bright.
DATA TABLE:
1994 1995 1996
A) Total Market Size: 526 774 844
B) Total Local Production: - - -
C) Total Exports: 4 6 6
D) Total Imports: 530 780 850
E) Imports from the U.S.: 362 600 654
Import and export statistics for 1994 were provided by INE-National
Statistics Institute. All other statistics are unofficial estimates.
SIGNIFICANT INVESTMENT OPPORTUNITIES
Three of the most promising market segments are:
Telecommunications: The Government is deregulating and privatizing the
USD2 billion telecommunications market. Modernization is quickly taking
place in the sector: investments of USD500 million per year have been
made and will continue until 1999 for digitalization, advanced services
and optical fiber digital highways linking Portugal with the rest of
Europe. Portugal is expected to reach the European Union average level
of telephones per capita with 35/45 telephones per 100 inhabitants by
1995.
In "Value Added Services", a U.S.-Portuguese consortium launched, in
1992, a pan-European cellular telephone network to bring competition to
land mobile services. Several other services such as paging, trunking,
data communications and audio services have been opened to the private
sector, to include foreign participation. Cable TV companies can now
operate in an environment of knowable (and workable) regulations and
some private companies have already applied for licenses. Basic
telephone services were recently privatized allowing about 28% private
stake. Foreign investment is not expected to reach more than 25% of the
total capital with holding of up to 15% by the strategic partner. The
growth rate in the sector has been about 20 percent per year and major
opportunities exist for both investment and exportation of telephone
switching equipment.
In a related market, Portugal has recently added two private television
stations which, with the expansion of cable television, is creating a
market for radio/television equipment which conform to AWEIGH standards.
Pollution Control Equipment: Pollution control is a rapidly growing
USD100 million a year market. Major polluting industries are cement,
cork, paper, rubber, tanning, and the ceramic industries. These
industries tend to be concentrated in Sines, Lisbon, Oporto, and the
Barreiro-Seixal areas. Best prospects in this sector are air pollution
control equipment and water purifying machinery.
Medical Equipment: Portugal is upgrading old hospitals and USD500
million is expected to be spent for new hospitals over the next 5 years.
U.S. products enjoy an excellent reputation, and the U.S. share of this
expanding 180 million dollar a year market could increase with more
aggressive marketing.
The Government of the United States acknowledges the contribution that
outward foreign investment makes to the U.S. economy. U.S. foreign
direct investment is increasingly viewed as a complement or even as 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 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 treaties negotiations and business facilitation programs,
that support U.S. investors.
VI. TRADE REGULATIONS AND STANDARDS
TRADE BARRIERS
The EU Customs Code (Code) was fully adopted in Portugal as of January
1, 1993. However a derogation of the Code is maintained for tobacco,
alcoholic beverages and automobile vehicles. The Code adopts the
directives of the General Agreement on Tariff and Trade (GATT) including
the amendments which resulted from the Uruguay Round of which Portugal
is a signatory member.
Portugal uses the Harmonized Nomenclature and Classification System (HS)
and applies import duties according to a maximum and minimum rate
schedule. The minimum tariff schedule is applied to goods originating in
countries entitled to the benefits of most-favored nation treatment
(that is, members of the GATT and countries with which the EU has signed
trade agreements) including the United States and most other countries.
Most import duties are levied on an ad valorem basis. However, specific
tariffs and compound tariffs (the basis for weight may be gross, legal
net or actual net weight) are also used for some imports.
CUSTOMS VALUATION
The customs value of imported goods is found by a set of six methods.
The most commonly used customs value is the normal price, that is, the
sales price in open market conditions when the product is sold to the
Customs Territory of the EU. If this method cannot be applied the others
may be successively used, the sixth being a last resort. The normal
price is based on the price actually paid by the importer to receive the
merchandise in EU territory. The invoice price is generally taken as the
normal price of an import if it is clear that the price reflects market
conditions and no doubt exists as to the accuracy of the details
supplied. The normal value is usually the CIF price including any
brokerage commissions and packing and excluding any duties payable in
Portugal.
IMPORT LICENSES
Because Portugal is a member of the EU, the majority of imported
products enjoy liberal import procedures. However, there are certain
products which require import licenses called import certificates for
agriculture products and international import certificates for
strategical/dual use products (products that may be used for both
military and civilian purposes). For dual use products a certificate of
delivery may also be required. There are also some licenses required for
the import of textile products and for some industrial products from
certain countries although not from the United States. Applications for
import licenses should be submitted to the General Directorate of
External Commerce. Tobacco, alcoholic beverages and automobiles are
still subject to some import controls, generally resulting from
bilateral agreements. Import of these products from the United States
have been restricted by import barriers including duties.
EXPORT CONTROLS
Since May 1988 Portugal has adopted EU directives regarding exportation.
Presently, Portuguese exporters need to obtain an export declaration
before they ship their merchandise. The export declaration is used for
the Portuguese Customs purposes but one copy should stay together with
other export documentation.
In principle, the export declaration cannot be obtained without a
receipt of deposit confirming that the merchandise is physically
deposited in a customs area or an export warehouse. Export warehouses
are approved by Customs authorities and generally facilitate the process
of exporting. They do so by issuing export declarations as soon as the
exporter informs the Customs authorities that the merchandise is
available, and by making said merchandise available for Customs
inspection.
Portuguese Customs regulation have recently approved the implementation
of simplified export proceedings. This allows authorized exporters,
exporters of perishables and express mail operators to export
merchandise directly from their establishments. They are only required
to present a commercial invoice to the Customs Authorities. The deposit
of a guaranty is no longer required for exporters to have access to
simplified export procedures.
IMPORT/EXPORT DOCUMENTATION
The following documents are required for ocean or air cargo shipments to
Portugal: a bill of lading or an air waybill accompanied by commercial
invoices.
Certain products require special documents: food products need a
certificate of health in Portuguese; electric materials need a
certificate of conformity to EU directives; grapes, alcoholic beverages
and tobacco need a certificate of authenticity. Certificates of origin
may also be required if the origin can in any way be attributed to a
country subject to quantitative or other restrictions.
Bills of Lading and Airway Bills-
Bills of lading and airway bills require no consular legalization.
However, these documents should, if possible state the origin. "To
order" bills of lading are acceptable if they bear the shipper's
endorsement. Two copies of the document used in Portuguese or English
are required.
Commercial Invoices -
Portuguese Customs requires two copies of commercial invoices, but at
least one additional copy should be provided to the importer. Commercial
invoices should have an accurate and specific description of the goods
with Free On Board (F.O.B.) value followed by an itemized description of
expenses or Cost Insurance and Freight (C.I.F.) value. The invoice
should indicate the country of origin. If the invoices are intended to
certify the origin of the goods, they must have a certification by a
chamber of commerce (or by U.S. Customs or port authorities).
In cases involving commodities that have undergone industrial
transformation not representing full process of manufacture in the
country of origin, or which have passed through free ports or zones, the
respective commercial invoice shall bear notation issued by the
Portuguese Consulate having jurisdiction in that area.
Certificate of Origin -
Certificates of origin are not required on direct shipments (ocean, air
or parcel post) or for goods transshipped via a waybill in which the
origin is stated. For shipments not covered by a commercial invoice, a
through bill of lading or air waybill stating the origin must be
accompanied by a certificate of origin if the origin can be attributed
to one country being subject to quantitative or any other restrictions.
Certificates of origin forms are obtainable from Portuguese consulates
or authorized Chambers of Commerce. Certificates must be certified by
an authorized Chamber of Commerce or the Portuguese consul, upon
presentation of satisfactory evidence of origin, either at the port of
original shipment or the port of transshipment.
TEMPORARY ENTRY
Foreign goods may enter Portuguese territory under temporary duty-free
admission. Temporary entry can be allowed for goods in transit, for
manufacturing, for temporary storage in bonded warehouses or for
temporary importation. Generally temporary entry of goods, requires the
deposit of a guaranty for import duties and VAT. However, in some cases,
exemptions and partial guaranties can be made. In transit merchandise
can be entered without guaranty by residents of the EU who make regular
entries in transit or under carnet TIR, carnet ATA or a NATO 302 form.
Guaranties are reimbursed when the merchandise leaves the territory of
the EU. Professional materials, merchandise to be presented in
exhibitions, teaching materials, medical/surgical and laboratory
equipment, and other materials listed in the EU customs code can be
temporarily imported duty-free under a carnet ATA. Temporary importation
allows the merchandise to stay in the EU territory as foreign
merchandise for a period of 24 months.
LABELING, MARKING REQUIREMENTS
Imported goods need to be marked with an indication of origin. The
indication "made in" is no longer accepted in Portugal. All imported
products sold directly to the public must be marketed with the label
"Fabricado em" which is the Portuguese translation of "Made in".
False indication of origin is prohibited.
Generally all products directly sold to the public must have their
labels or markings translated into Portuguese especially the composition
and usage instructions and should indicate clearly its validity and the
name and address of the importer.
There may be special requirements for some product such as
pharmaceuticals, detergents, tobacco, fertilizers, alcoholic beverages
and foodstuffs containing preservatives and colorings. There are also
special requirements for the packaging and labeling of dangerous or
toxic products.
Jewelry and other articles of gold, silver or platinum must be assayed
and hallmarked in Portugal by the assayer's office in Lisbon or Oporto.
EU directives for these products have not yet been adopted in Portugal.
The regulations on the content of such articles are stringent. The
importation of these articles is limited to those firms or persons
registered in the assayer's office.
There are no special requirements for marking the outside of cases for
shipment to Portugal except that weights, when marked, should be in
kilograms. Dangerous products must be marked according to the
instructions of the UN.
PROHIBITED IMPORTS
As an EU country Portugal follows the EU Customs Code and has no
prohibited imports. However, some products are subject to very strict
controls such as strategic products, wildlife, hazardous articles, non-
sport firearms and ammunition, etc.
STANDARDS (E.G. ISO 9000 USAGE)
Portugal follows closely the EU directives and as a GATT member adopts
the European Committee for Standardization (ECS) standards for a number
of products including low voltage electrical material, boilers,
telecommunication peripheral equipment. However, these standards are
only mandatory after publication as a Portuguese law. If American
exporters wish to be exempted from European security standards they must
demonstrate through a certifying entity that the products offered meet
equivalent security standards
Portugal uses NPEN 29000 Standards created to conform with ISO 9000
standards to which they are equivalent.
Certification of standards is made in Portugal by the IPQ-Instituto
Portugues da Qualidade (Portuguese Institute for Quality).
FREE TRADE ZONES/WAREHOUSES
Portugal has two free trade and industrial zones in the autonomous
regions of the islands of Madeira and the Azores. These free trade zones
were both fully authorized in conformity with EU rules on incentives
granted to member states. The authorized activities are: industrial and
commercial activities, international services activities, trust and
trust management companies and branches, and offshore financial
branches. Madeira created an International Shipping Register to solve
the international "flagging-out" issue in Portugal. Companies
established in the Free Trade Zones enjoy several benefits including
import/export related benefits, financial incentives, tax incentives for
investors and tax incentives for companies.
The Madeira free trade zone has had some success and is well known.
However, the free trade zone of the Azores Islands has not achieved the
same degree of international acceptance as Madeira.
Bonded warehouses: Foreign products may be entered into Portugal and be
stored in bonded warehouses duty-free for an unlimited period of time.
There are five types of bonded warehouses depending on its public or
private nature and whether its management is endorsed by the Customs
authorities or by private entities (established in the territory of the
EU). In some bonded warehouses it is possible to do some handling,
assembling and or manufacturing of the stored goods.
SPECIAL IMPORT PROVISIONS
Advanced rulings on classification: Advanced rulings on tariff
classifications for each type of product may be obtained upon request,
in writing, to Customs at Oporto or Lisbon. The request should include
the name and address of the person who wants the ruling plus detailed
descriptions, composition, applications of the product and as well as
samples duly packed and labeled or photographs, plans or catalogs. The
nomenclature on which the classification is desired, the suggested
classification and other information necessary for an adequate ruling
may also be supplied.
An advanced ruling may lose validity if it is no longer compatible with
new regulations or with new interpretation of the nomenclature used and
this information is given to the holder of the ruling. There may a
postponement (of up to six months or the period of validity of any
import certificate issued) of the loss of validity of an advanced
rulings --- for duty determination purposes or calculation of quantity
restrictions --- if import/export contracts have already been made or
certificates of importation have been issued.
Entry and reexport: Foreign merchandise landed in Portugal must be
declared for importation or temporary entry into the EU territory within
a period of 45 days if landed by sea or 20 days if landed by air or
from land. After arrival, if the merchandise cannot be immediately
declared to customs because documentation is missing or because of any
other reason, it will be stored ex-officio by the port authority in
temporary storage customs warehouses, the cost of which is variable
according to the nature of the merchandise. Any merchandise may be
reshipped out of EU territory either before or after customs clearance.
Normal reexportation is made when the merchandise was entered under one
of the temporary entry regimens. Reexportation may be done after
submission of a special customs declaration.
Samples and advertising materials: As an EU country and member of the
Convention to Facilitate the Importation of Samples and Advertising
Matter, Portugal grants duty free entry to giveaway samples properly
labeled (except Tobacco and Matches), up to a duty value of 175 ECUs and
up to a VAT value of the same amount.
Samples for which the duty is greater than these amounts may also be
admitted duty free if they are intended for exhibitions, conventions or
similar events, or other promotional purposes that justify the quantity
being imported. The person making the declaration should provide
justification for the larger quantity.
Samples are subject to the same documentation requirements that apply to
ordinary commercial shipments and require a symbolic value for customs
declaration purposes on the shipping documents or commercial invoices.
Catalogs, price lists, brochures, pamphlets may also be entered duty
free under the same conditions as the samples, if the name of the
manufacturer/seller is readily apparent.
Duty refund: Once goods have been cleared through customs, collected
duties or excess payments may be refunded if at the moment of payment
they were not due. Refund for undue and excess payments can be claimed
within a period of three years. Refund of duties can also be obtained if
a customs clearance declaration is cancelled after the payment of
duties. If imported merchandise is defective or does not meet the
contracted specifications and is refused and reexported by the importer,
he may request a duty refund within a period of 12 months.
There are other conditions, defined by the EU Committee, under which
paid import duties may be refunded. All refunds must be requested by the
interested parties.
Drawback: Importers may take advantage of "drawbacks" for all types of
merchandise, except those subject to quantity restrictions or any
agricultural leveling duty or similar imposition when the merchandise
was cleared. Drawbacks allow the reimbursement of any duties paid on
raw materials , parts, or components imported for the manufacture of a
product in country for later exportation. This will be possible only if
there are no restrictions to the exportation of the products that
resulted from the imported merchandise and that the intended exportation
took place.
MEMBERSHIP IN FREE TRADE ARRANGEMENTS
Portugal is a member of the European Union.
VII. INVESTMENT CLIMATE
OPENNESS TO FOREIGN INVESTMENT
The Portuguese government considers foreign investment an essential part
of its overall strategy to modernize the economy. As a result, Portugal
actively seeks foreign investment, and provides subsidies to many
investments. ICEP, the foreign investment promotion agency, has
targeted U.S. investors for particular attention in 1995 in a bid to
raise the share of U.S. capital as a proportion of foreign direct
investment in Portugal. Foreign investment is permitted in all sectors
open to private investment. There are limits on foreign investment in
certain strategic sectors. Since joining the EU in 1986, Portugal has
experienced large increases in both direct and portfolio foreign
investment. Foreign direct investment inflows increased from USD 166
million in 1986 to USD 2.5 billion in 1991 (3.2 percent of GDP). Since
1991, however, foreign direct investment has slowed to approximately
half of earlier levels. In 1994, foreign direct investors -- primarily
from Germany, Spain, France and Switzerland -- invested USD 1.3 billion
in Portugal, mainly in the form of equity capital. The U.S. was the
sixth largest foreign direct investor in 1994. Foreign portfolio
investors -- mostly from the U.K., U.S., Japan, and France -- purchased
some USD 1.7 billion in Portuguese securities, mainly public bonds (75
percent) and stocks (25 percent). The government issued some USD 3
billion in new bonds in external markets in 1994.
Decree Law No. 197 of December 1986 provides the framework for the
current investment regime. Foreign investors must submit a prior
declaration to ICEP, which has two months after receipt of a properly
documented project to render a decision. For investments that require
foreign exchange movements, ICEP may consult the Bank of Portugal. If
ICEP does not reply within the stipulated two-month period, the project
is automatically approved. In practice, almost all foreign investment
proposals are approved within one month.
Foreign investors have access to all incentives and grants available to
national investors. The investment incentive program is primarily cash-
based, although tax holidays can be negotiated. In practice, for large
investment projects (defined as exceeding 10 billion escudos or
approximately USD 676 million at mid-1995 exchange rates), incentives
are negotiated on a case-by-case basis with ICEP, various economic
ministries, and the Bank of Portugal. U.S. companies have access to
these funds and have not reported any discriminatory treatment.
A U.S.-Portugal Double Taxation Treaty is awaiting final approval by the
U.S. Senate. Portugal has already ratified and promulgated the tax
treaty. Once the U.S. Senate approves, the treaty will enter into force
following the exchange of instruments of ratification at the beginning
of the new calendar year following ratification.
CONVERSION AND TRANSFER POLICIES
The Government does not interfere with the transfer abroad of profits
and dividends.
EXPROPRIATION AND COMPENSATION
There has been little or no experience in Portugal of expropriation of
foreign assets or companies. Some former Portuguese owners of companies
nationalized at the time of the 1974 Revolution consider Government
attempts to compensate them as inadequate and believe they should have
preference in the re-privatization of these firms.
There are no policies of the host government to discriminate against
U.S. investments, companies or representatives.
DISPUTE SETTLEMENT
Post is not aware of any major investment disputes involving foreign
investors. Portugal is a member of the International Center for the
Settlement of Investment Disputes.
POLITICAL VIOLENCE
There have been no recent incidents of politically motivated damage to
projects or installations. The political environment is stable and it
is highly improbable that civil disturbances that would jeopardize the
political order will occur. There are no nascent insurrections or
belligerent neighbors.
PERFORMANCE REQUIREMENTS/INCENTIVES
Foreign investors seeking standard incentive benefits are guaranteed
treatment equal to that of Portuguese firms and are not normally subject
to performance requirements. Performance and local content requirements
may arise on an ad hoc basis in the case of negotiated incentives.
The Ministry of Labor must approve the employment of non-EU foreign
nationals and at least 90 percent of the employees of resident companies
must be Portuguese.
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
Foreign investors may invest in all sectors open to private investment.
Foreign investment is specifically limited in the following "strategic"
sectors: mining, maritime transport, air transport, international road
transport, telecommunications, television, and fishing.
Competitive inequities between private and public entities have been
reduced in recent years. In the financial sector, public banks now
compete on equal footing with private banks. There still appear to be
competitive advantages for state entities operating in airline transport
and telecommunications.
Portugal is engaged in a wide-ranging privatization program in sectors
such as banking, insurance, cement, petroleum, transport, steel and
chemicals. Foreign participation in the initial sale of these firms is
sometimes limited. Once the initial privatization has taken place,
however, these companies will be publicly traded and available to
international buyers.
PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
Portugal is a member of the International Union for the Protection of
Industrial Property (WIPO) and a party to the Madrid Agreement on
international registration of trademarks and prevention of the use of
false origins. The Munich Convention on European Patents went into
effect on January 1, 1992. To conform to the trademark and patent
provisions of the GATT (TRIPS) Portugal has passed a new Code of
Industrial Property that went into effect on June 1, 1995. The current
Portuguese law on copyright protection is also in accordance with TRIPS;
the Portuguese government is in the process of transposing EU directives
on Duration, Rental, and Broadcasting into law.
Informatics legislation entered into force in 1991. This legislation
has improved the enforcement of copyright law and has increased the sale
of computer software. The Portuguese Association of Software Producers
(ASSOFT) has conducted an aggressive public awareness campaign which has
included raids and seizures of illegal software at large companies.
Significant enforcement problems remain and are exacerbated by lengthy
delays in concluding court cases.
REGULATORY SYSTEM: LAWS AND PROCEDURES
As Portugal transposes EU single market directives into national law,
barriers to trade, capital and labor movements are progressively
diminishing. A major tax reform in 1989 brought the Portuguese tax
system closer to those found in other EU countries. These steps at
creating a single market have fostered increased competition in
Portugal.
While bureaucratic procedures for establishing and maintaining a foreign
investment have improved since the introduction of the 1986 foreign
investment regime, businessmen still consider red tape excessive. Some
businessmen believe entry cost would be reduced with the introduction of
a one-stop registration entity.
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
Foreign firms have access to domestic capital markets. They may also be
quoted on the Lisbon Stock Exchange if operated as Portuguese firms.
Futures and options are traded over the counter and a futures and
options exchange is scheduled to start operations in Porto in late 1995.
The lifting of all remaining capital controls as of January 1, 1993
stimulated substantial inflows of portfolio investment into Portugal.
The stock of investment by foreign banks and investment trusts in
Portuguese government bonds and stocks was some USD 11.4 billion in 1994
versus USD 8.5 billion in 1993. The stock of foreign portfolio
investment denominated in domestic currency declined by 13%, whereas
foreign currency denominated portfolio investment jumped 70%. (Note:
This trend reflects the re-classification of government external
obligations from "credits received" to "foreign portfolio investment in
Portugal" per IMF guidelines as of March 1995.) The U.K. accounted for
28 percent of portfolio investment at end-1994; the U.S. and Germany
were second and third with 13 and 12 percent of the outstanding
securities, respectively, in 1994.
In the primary bond market, the Portuguese Treasury remained the
principal player 1994, accounting for almost three-fourths of resident
issues. In August, 1994, the bond market was liberalized to permit non-
resident corporate issuers besides supranational and foreign states.
Nevertheless, the European Investment Bank remained the main issuer of
Escudo Eurobonds -- Caravelas -- with four issues totalling PTE 60
billion (USD 360 million at average exchange rates). The volume of
corporate bonds declined slightly in 1994 as commercial paper gained as
an alternate form of financing. Commercial paper benefitted from
exemption from the stamp tax on interest (versus loans), favorable
spreads, and ease of renewal. The secondary bond market was buffeted by
the rise in international interest rates in 1994. Nominal bond yields
jumped sharply, and despite the prospect of a continued decline in
Portuguese inflation, 10-year Portuguese bonds were yielding 11.57
percent at end-1994, versus 7.45 percent for comparable German bonds,
for a real spread in excess of 200 basis points.
Primary stock issues remained small in 1994 as in 1993 -- about PTE 29
billion (or USD 175 million at average exchange rates) -- as Portuguese
firms continued to shy away from the capital markets as a source of
financing. Portuguese companies tend to be relatively small, family-
owned, and not used to providing significant disclosure, and therefore
tend to prefer bank loans over capital markets for financing. Although
the banking sector continued to weigh heavily in the capital markets in
1994, privatization of 20 percent of CIMPOR, the state-owned cement
company, in July 1994 marked the beginning of a shift toward non-
financial sectors. Privatization of 27 percent of Portugal Telecom, the
state-owned telephone company, in June 1995 accentuated this trend. In
the secondary market, the Lisbon Stock Exchange index increased by 8.4
percent in 1994 versus 1993. Large, blue-chip firms that have
restructured in recent years performed best. The Portuguese market
yield measured in dollars was about 8 percent, versus a -2.4 percent
average for emerging markets. A more transparent disclosure and
regulatory system, further progress on privatization, establishment of
the futures and options exchange, and differentiation of the market from
other southern European markets should help strengthen the capital
markets in coming years.
BILATERAL INVESTMENT AGREEMENTS
Portugal is an active participant in efforts to negotiate a Multilateral
Agreement on Investment (MAI) within the 25-nation OECD framework.
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
There are no restrictions on OPIC programs in Portugal. OPIC actively
promotes U.S.investment in Portugal.
Portugal is a member of the Multilateral Investment Guarantee Agency
(MIGA).
LABOR
In recent years labor/management relations in the private sector have
been generally good. U.S. companies report high worker productivity.
Real wages are flexible, but the labor law is quite rigid, making the
dismissal of workers not covered by limited-term contracts difficult.
Strikes in the private sector are rare, except in the mining sector.
Public sector labor disruption is common, especially in the transport
sector. Portugal is a member of the International Labor Organization
(ILO). The Government generally adheres to the ILO Conventions
Protecting Labor Rights. The major shortcoming in this regard are
violations of minimum age requirements. Labor factors have not limited
the choice of technology.
CAPITAL OUTFLOW POLICY
There are no restrictions on capital outflows as of January 1, 1993 and
Portugal is fully harmonized with EU capital movement policies.
MAJOR FOREIGN INVESTORS
Inflows of foreign direct investment (FDI) dropped to USD 1.5 billion in
1994 (1.6 percent of GDP) from USD 2.7 billion in 1991 (3.4 percent of
GDP). This drop reflected the recession in 1993 as well as an
exceptional surge of investment in public infrastructure and private
plants during 1989 - 1992. There are no reliable recent estimates of
the stock of FDI in Portugal. The major foreign investors in recent
years have been Spain, Germany, France, Switzerland and the United
Kingdom. The United States was Portugal's sixth largest foreign direct
investor in 1994.
VIII. TRADE AND PROJECT FINANCING
BRIEF DESCRIPTION OF BANKING SYSTEM
After Portugal's accession to the EU in 1986, the Portuguese financial
sector underwent dramatic reforms. Most of the once-nationalized
financial system was "de-nationalized" and is now in private hands. The
number of banks increased to 44 in 1995 from 16 in 1983. Foreign
investment played an important role in this transformation and the
number of foreign banks increased to 17 in 1995 from 3 in 1984. Despite
large-scale privatization, the government still retains a substantial
presence in the financial sector through its ownership of the Caixa
Geral de Depositos (CGD) and Banco de Fomento e Exterior (BFE) groups.
The government has contracted the McKinsey consulting firm to do an
independent assessment of the role of state-owned banks in the financial
sector. It plans to use the McKinsey results in deciding whether to
proceed with privatization of the remainder of BFE and/or parts of CGD.
Given the concentration of assets as a result of major mergers and
acquisitions in recent years, the government seeks to ensure salutary
competition among the newly consolidated institutions. In particular,
the government is concerned that bank lending rates may not reflect
market conditions. Whereas corporate loan rates were 15 - 16 percent
in early 1995, for example, commercial paper rates were only 9 - 10
percent.
In early 1995, the five largest banks had assets of close to USD 135
billion, accounting for about 85 percent of total banking assets. The
state-owned CGD/Banco Nacional Ultramarino (BNU) group had assets of
over 45 billion, while the merger of Banco Comercial Portugues (BCP) and
Banco Portugues do Atlantico (BPA) created the second largest banking
group with assets of about USD 35 billion. Third was the newly merged
Banco Pinto e Sotto Maior (BPSM)/Banco Totta e Acores (BTA) group with
USD 26 billion in assets and fourth and fifth with assets of about USD
15 billion were BFE/Banco Borges e Irmao (BBI) and Banco Espirito Santo
(BES). Capital solvency ratios have increased the soundness of the
banking system in recent years. A new minimum reserve requirement
regime entered into force on November 1, 1994. The main change was a
reduction to 2% from 17% of banks' required reserve ratio.
Banks' entry strategies varied from the establishment of branch
operations to joint ventures. At present, the two U.S. banks operating
in Portugal do so as locally-incorporated subsidiaries.
The opening of the financial sector to private investment has led to
increased competition, specialization, and concentration. The
elimination of all barriers to capital movements and the Portuguese
Escudo's incorporation in the exchange rate mechanism (ERM) of the
European Monetary System (EMS) in 1992 has stimulated further
competition. Still, intermediation margins and fees remain high by EU
standards.
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
There are none.
GENERAL FINANCING AVAILABILITY
Short-term and medium-term financing are readily available. Overdrafts
are the most common source of short term finance for corporations.
Intercompany borrowing is also common. The issuance of commercial paper
began in 1993. The placement of bonds by corporations is extensive and
growing.
EXPORT FINANCE/METHODS OF PAYMENT
Bankers acceptances and supplier credit are commonly used to finance
international trade. Most international trade is handled by commercial
banks. Both Exim-Bank and OPIC programs are available in Portugal, but
are little used because commercial credit is widely available and
political risks are not perceived to be high. Project financing from
multilateral institutions such as the World Bank (IBRD) and the European
Investment Bank (EIB) are available. Commercial banks also offer
project financing.
PROJECT FINANCING
Contractors may be required to bring financing proposals for major
projects bids on a case-by-case basis although generally the Government
finances the project. Project financing is available for a wide
variety of projects ranging from bridges to gas pipeline construction.
LIST OF COMMERCIAL BANKS
Banco Comercial Portugues, SA
Rua Augusta 62/74
1100 Lisboa
Tel: 351-1 347 3474
Fax: 351-1 342 1677
Banco Espirito Santo e Comercial de Lisboa
Av. da Liberdade 195
1200 Lisboa
Tel: 351-1 578 805
Fax: 351-1 532 931
Banco Pinto & Sotto Mayor
Rua do Ouro, 28-3.
1100 Lisboa
Tel: 351-1 347 6261
Fax: 351-1 342 7278
Banco Totta & Acores
Rua do Ouro, 88 -2.
1100 Lisboa
Tel: 351-1 346 9421
Fax: 351-1 346 2386
Banco Comercio e Industria
Rua Andrade Corvo 42
1000 Lisboa
Tel: 351-1 355 8366
Fax: 351-1 549 453
Caixa Geral de Depositos
Lg. do Calhariz
1100 Lisboa
Tel: 351-1 346 1981
Fax: 351-1 342 1306
Barclays Bank PLC
Av. da Republica 50- 2.
1000 Lisboa
Tel: 351-1 793 5020
Fax: 351-1 797 9610
IX. BUSINESS TRAVEL
Business Customs
Portugal is a country in transition culturally as well as economically.
In this transitional environment some of the social graces belonging to
a more secure, paternal past era linger. Courtesy, in business and
other spheres, is simply expected and easily extended. Legal contracts
don't have the strength in business associations that personal
confidence, built over years of experience, offers. Aggressiveness is
not yet keen in marketing because it may be interpreted as socially
offensive. Pragmatism, of the American variety, is respected but only
when presented as a possible option to be taken, not as an opportunity
that must be breathlessly seized.
In terms of everyday business the Portuguese are correct and civil.
They respect the time of their appointments and expect the same from
others. They are thorough to a fault, often pouring over all the
documents relative to a negotiation, and not too ready "to just hit the
highlights".
This is done partly to be careful (conservative) but also to
demonstrate their grasp of the matter - - exhibiting pedantic merit
rather than pragmatic merit. Many Portuguese speak two, often three
languages, English being the preferred second language. Many have
relatives in the U.S. and have visited North America.
In summary, the Portuguese are a society in transition but with
sufficient worldly experience to have confidence in dealing with the
future. And they view Americans as a friendly counter-balance to the
friendly (but overwhelmingly so) Europeans.
No visas are required to visit Portugal for stays of 60 days or less.
There are no travel advisories for Portugal nor have there been for many
years.
Portugal has direct airline connections from Lisbon with all the major
centers in the European Union, New York and Boston in the United States,
a number of Portuguese-speaking countries in Africa, and with the major
cities in Brazil. Oporto serves fewer cities directly in the European
Union, none in North America, but does serve the major cities in Brazil.
English is a widely-spoken second language in Portugal and American
business travelers can expect to conduct their meetings with business
and government contacts in English much as they would in Holland (and
much more than in Spain, Italy, France or Germany).
Portugal is a fully "wired" country with regard to communications
making available all the services found anywhere else in Europe: long-
distance calls on Stateside credit cards; cellular telephones with
"roaming" capabilities; video-conferencing in state-of-the-art
facilities; Internet services; e-mail,etc.
Housing in Portugal is at European standards but so are the rents.
Executive location costs in Portugal are now in the same category as any
major commercial center in the European Union.
Health care in Portugal is a constitutional right which means that the
public health facilities are overburdened and therefore not able to
offer the level of service considered normal in the United States. There
are a number of private clinics and small private hospitals that are
adequate for the treatment of most ailments but acute cases would
require evacuation.
Food supplies are plentiful though there are seasonal variations in
prices for perishable items. Supermarkets are as fully stocked and offer
the same variety as any in the United States although familiar brands to
Americans would have to be substituted for a European equivalent. Prices
are very close to those found in the United States and often exceeded
them for packaged goods.
APPENDICES
APPENDIX A. COUNTRY DATA
(All figures USD millions except where noted)
1. Profile
Population: 9.8 million
Population growth rate: 0.0
Religion(s): Predominantly Roman Catholic
Government system: Parliamentary Democracy
Language(s): Portuguese
Work week: 44 hours
APPENDIX B. DOMESTIC ECONOMY
1994 1995P 1996E
GDP 87,982 104,600 108,961
GDP growth rate -1.0 1.1 3.0
GDP per capita 8,925 10,612 11,054
Government spending/GDP 48.0 48.6 47.4
Inflation 5.2 4.5 4.0
Unemployment 6.8 7.0 6.5
Foreign exchange reserves 21,325 20,500 20,000
Average exchange rate
per USD 1.00 165.9
Foreign debt 16,415 17,300 17,000
Debt service ratio 11.6 10.0 10.0
US Econ/Military assistance n/a n/a n/a
APPENDIX C. TRADE
1994 1995P 1996E
Total country exports 17,536 19,500 20,500
Total country imports 24,147 26,562 29,218
US exports 1,054 1,160 1,275
US imports 898 900 950
US share of host country imports 4.3 4.3 4.4
Imports of manufactured goods 19,300 21,525 23,800
- From US 757 800 850
- US share of manufact. imports 3.9 3.7 3.5
Manufactured goods
trade balance with US 10 0.0 0.0
Projected annual average
growth rate from US 7.8 5.7 6.3
Imports of agricultural goods 4,500 4,800 5,000
- From US 227 264 300
- US share of ag. imports 5.0 5.5 6.0
- Ag goods trade balance with US 200 200 250
Trade balance with
3 leading partners -3,945 -3,500 -2,600
Principal US exports: Animal Feed, Soybeans, Corn Gluten Feed, Coal,
Equipment (computers, telecommunications, aircraft and associated)
Principal US imports: Apparel, Textiles, Footwear, Cork, oil (not
crude).
APPENDIX D. INVESTMENT STATISTICS
FOREIGN DIRECT INVESTMENT
By Country of Origin
(Percent of Total Investment)
1992 1993 1994
United Kingdom 29.7 18.5 -1.3
Germany 5.5 8.1 26.5
France 17.8 14.3 11.3
Spain 8.0 28.2 15.2
Other OECD EU 20.0 13.0 12.8
Switzerland 3.1 9.0 12.1
USA 4.1 2.6 3.4
Japan n/a 0.3 1.2
Other OECD non-EU n/a 0.4 0.3
Rest of World n/a 5.6 18.5
Source: Bank of Portugal
Industry Sector Destination
1992 1993 1994
Manufacturing 18.0 17.8 42.6
Construction & public works 4.3 3.0 1.6
Banks and other financial
institutions, insurance, real
estate transactions and
services rendered to firms 63.3 56.5 39.1
Wholesale, Retail Trade,
Restaurants, and Hotels 8.0 7.2 11.9
Electricity, Gas 0.0 0.9
Transport/Communications n/a 1.0 2.0
Other n/a 4.5 1.9
Source: Bank of Portugal
PORTUGUESE DIRECT FOREIGN INVESTMENT ABROAD
(millions of dollars)
All sectors 1992 1993 1994
696 107 283
Portuguese direct foreign investment abroad is mainly equity capital
invested in the manufacturing and financial sectors. Spain accounted
for 43 percent of Portuguese investment abroad during 1993 - 1994.
France, the United Kingdom and the United States each has accounted for
about 10 percent of Portuguese investment abroad over the past two
years.
Source: Bank of Portugal
MAJOR FOREIGN DIRECT INVESTORS
The following table ranks the largest foreign firms among the top one
hundred firms in Portugal based on turnover. There are 39 foreign firms
in the top 100, an increase of 7 from the 1990 survey.
Rank Company Turnover 1992
(millions dollars)
4 Renault 1,120
6 Shell 966
8 Mobil Oil USA 733
9 Makro 729
10 Supa Supermarkets 722
11 Renault Gest 640
12 Modelo Supermarkets 598
14 Fiat 568
16 General Motors USA 468
18 BP 462
19 Salvador Caetano(Toyota) 457
20 Ford USA 450
21 Fiat 450
25 Citroen 347
35 Nestle 276
36 Carrefour 269
38 IBM USA 254
39 Siemens 249
42 Centralcer 235
43 Lever 231
44 Auto-Sueco 229
50 Philips 216
53 Baviera 211
57 Modelo Sprmarkets 189
58 Neste 188
60 Cablesa 182
61 Mitsubishi 180
62 Sony 177
63 Rover 166
66 Texas Instruments USA 165
68 Secil 163
76 Mercedes Benz 151
80 Bento Pedroso 144
82 Cepsa 141
84 Hoechst 139
90 Esso USA 130
92 Alcatel 129
94 Celbi 127
98 Maconde 124
Note: This data excludes financial institutions.
Source: "Expresso" annual survey dated Nov. 1993
APPENDIX E. U.S. AND COUNTRY CONTACTS
- U.S. Embassy Trade Related Contacts
Lisbon - Commercial Service
American Embassy
Av. das Forcas Armadas
Sete Rios
1600 Lisbon
Phone: (351-1) 726 6600
Telex: 12 528 AMEMB P
Fax: (351-1) 726 8914
or
Commercial Section
American Embassy
PSC 83 Box FCS
APO AE 09726
- Daniel Thompson
Commercial Attache
Ext. 2526
David Norland
Economic Counselor
Ext. 2242
Frank Lee
Agricultural Counselor
Ext. 2358
Colonel Jesse Perez
Chief, ODC
The CS-Lisbon can be also contacted through FocUS-Europe Database
Access is as follows:
Direct Dial: (351-1) 395 1448
DB address: C 02021061790
Username: GUEST
Password: GUEST
Internet: Telnet 194.65.13.20
Username: GUEST
Password: GUEST
World Wide Web: WWW.telepac.pt
Oporto - American Business Center - Oporto
Praca Conde de Samodaes, 65
4100 Oporto
Phone: (351-2) 606 3094 / 5 / 6
Fax: (351-2) 600 2737
- Adolfo Coutinho
Commercial Specialist
- Washington-Based USG Country Contacts
Ms. Ann Corro
USDOC
14th & Constitution Ave., N.W.
Room 3042
Washington, D.C.20230
Tel: (202) 482 3945
Fax: (202) 482 2867
- Amcham and Bilateral Business Councils
Portugal-U.S. Chamber of Commerce
5 West 45th Street
New York, NY 10036
Tel. (212) 354-4627
Fax: (212) 575-4737
American Chamber of Commerce in Portugal
Rua D. Estefania, 155-5.E
1000 Lisbon, Portugal
Tel: (351-1) 57 2561
Fax: (351-1) 57 2580
Contact: Dr. Brito do Rio, Secretary
- Country Trade or Industry Associations in Key Sectors
Associacao Comercial de Lisboa
(Lisbon Commercial Association)
Rua das Portas de Santo Antonio, 89
1150 Lisboa
Tel: 351-1/346 33 55
Fax: 351-1/342 43 04
Associacao Comercial do Porto
(Oporto Commercial Association)
Palacio da Bolsa
Rua Ferreira Borges
4000 Porto
Tel: 351-2/200 44 97
Associacao Industrial Portuguesa
(Portuguese Industrial Association)
Praca das Industrias, 3200
1304 Lisboa Codex
Tel: 351-1/360 10 00
Fax: 351-1/363 90 47
R. Oliveira Monteiro, 453
4000 Porto
Tel: 351-2/600 64 48
Associacao Industrial Portuense
(Oporto Industrial Association)
Av. da Boavista, 2671
4100 Porto
Tel: 351-2/617 22 57
Confederacao dos Agricultores de Portugal (CAP)
Av. Coleg Militar, Lt. 1786
1500 Lisboa
Tel: 351-1/710 00
Confederacao do Comercio Portugues (CCP)
Rua Correia, 79
1100 Lisboa
Tel: (351-1)342 20 47/21 60
Fax: 347 86 38
Confederacao da Industria Portuguesa (CIP)
Av. 5 de Outubro, 35 - 1
1050 Lisboa
Tel: 351-1/547 454
Fax: 351-1/545 094
American Chamber of Commerce in Portugal
Rua D. Estefania, 155-5
1000 Lisbon, Portugal
Tel: 351-1/572 561
Fax: 351-1/572 580
- Portuguese Government Agencies
Ministerio das Financas
(Ministry of Economy and Finance)
Av. Infante D. Henrique, 1
1100 Lisbon
Tel: 351-1/88-4675
Fax: 351-1/886-2360
Ministerio da Industria e Energia
(Ministry of Industry and Energy)
Rua da Horta Seca, 15
1200 Lisbon
Tel: 351-1/52-5419
Ministerio do Emprego e Seguranca Social
(Ministry of Labor)
Praca de Londres, 2-16
1000 Lisbon
Tel: 351-1/847-0010
Fax: 351-1/80-1112
Secretaria de Estado de Agricultura
(Secretary of State for Agriculture)
Praca de Commercio
1100 Lisbon
Tel: 351-1/346 33 66
Fax: 351-1/342 03 71
Secretaria de Estado das Pescas
(Secretary of State for Fishing)
Av. Brasilia, (Alges, Praia)
1400 Lisbon
Tel: 351-1/61 63 61
Fax: 351-1/61 65 16
Direccao de Servicos Regional de Lisboa
Divisao de Combustiveis
(Fuel Division)
Av. Fontes Pereira de Melo, 26 - 2
1000 Lisbon
Tel: 351-1/57 11 20
Fax: 351-1/57 10 80
Direccao Geral das Alfandegas
(Director General of Customs)
Rua da Alfandega
1100 Lisbon
Tel: 351-1/878 785
Fax: 351-1/878 335
Instituto Nacional de Engenharia e
Tecnologia Industrial
(High-Tech Institute)
Azinhaga dos Lameiros a Estrada do Paco do Lumiar
Lumiar 1600 Lisboa
Tel: 351-1/716 51 41
Fax: 351-1/716 09 01
Direccao Geral das Minas e Servicos Geologicos
(Director of Mines and Geological Services)
Rua Antonio Enes, 7
1000 Lisbon
Tel: 351-1/546 126
Fax: 351-1/525 913
Secretaria do Estado das Obras Publicas
(Secretary for Public Works)
Rua de S. Mamede ao Caldas, 21
1100 Lisbon
Tel: 351-1/886 22 47
Fax: 351-1/886 30 54
Secretaria do Estado da Habitacao
(Secretary for Housing)
Rua de S. Mamede ao Caldas, 21
1100 Lisbon
Tel: 351-1/886 22 47
Fax: 351-1/886 23 00
Direccao Geral de Aviacao Civil
(Director General for Civil Aeronautics)
Av. da Liberdade, 193
1250 Lisbon
Tel: 351-1/573 517
Fax: 351-1/523 214
Instituto National de Estatistica
(National Institute of Statistics)
Av. Antonio Jose de Almeida, Apt. 1239
1007 Lisbon Codex
Tel: 351-1/847 00 50
Fax: 351-1/808 80 93
Secretario do Estado da Industria
(Secretary for Industry)
Rua da Horta Seca, 15
1200 Lisbon
Tel: 351-1/346 30 91
Fax: 351-1/346 92 51
Secretario do Estado da Energia
(Secretary for Energy)
Rua da Horta Seca, 15
1200 Lisboa
Tel: 351-1/346 30 91
Fax: 351-1/347 00 94
Banco de Portugal
Rua do Comercio, 148
1100 Lisboa
Tel: 351-1/346 29 31
Fax: 351-1/346 48 43
Instituto do Comercio Externo de Portugal - ICEP
Av. 5 de Outubro, 101-3
1000 Lisboa Codex
Tel: 351-1/793 01 03
Fax: 351-1/795 23 29
Direccao-Geral do Comercio
(Directorate-General of Commerce)
Av. da Republica, 79
1050 Lisboa
Tel: 351-1/793 09 93
IFADAP - Instituto Financeiro de Apoio ao Desenvolvimento
da Agricultura e Pescas
Rua D. Estefania, 77-7D
1150 Lisboa
Tel: 351-1/57 80 74
Direccao-Geral da Industria
Av. Conselheiro Fernandes Sousa, 11
1070 Lisboa
Tel: 351-1/659 161
Fax: 351-1/659 10 42
Registo Nacional das Pessoas Colectivas
Av. Oscar Monteiro Torres, 39-A
1500 Lisboa
Tel: 351-1/735 034
IAPMEI - Instituto de Apoio as Pequenas e Medias
Empresas e ao Investimento
(Industrial Small Business Institute)
Rua Rodrigo da Fonseca, 73/73-AQ; (57,2)
1250 Lisboa
Tel: 351-1/386 43 33
Fax: 351-1/386 31 61
Bolsa de Valores de Lisboa
(Lisbon Stock Exchange)
Praca do Comercio
1100 Lisboa
Tel: 351-1/87 37 88
Bolsa de Valores do Porto
(Oporto Stock Exchange)
Palacio da Bolsa
4000 Porto
Tel: 351-2/32 20 84
Instituto das Comunicacoes de Portugal
Av. Jose Malhoa, 12
1070 Lisbon, Portugal
Tel: (351-1) 721 1000
Fax: (351-1) 726 3743
- Country Market Research Firms
A.C. Nielsen Co.
Rua D. Filipa Vilhena 38-3
1000 Lisboa
Tel: 351-1/796 64 81
Fax: 351-1/793 72 87
Consulmark - Gabinete Consultor de Marketing Lda.
Rua Pascoal de Melo 67-4
1000 Lisboa
Tel: 351-1/352 88 84
Fax: 351-1/352 88 83
Ecotel Portugal - Estudos de Mercado SA
Av. Almirante Reis 59-4
1150 Lisboa
Tel: 351-1/352 65 54
Fax: 351-1/352 65 59
ESEO - E M Estudos de Mercado Lda.
Rua Marquês da Fronteira, 76 - 5º
1070 Lisboa
Tel: 351-1/385 85 64
Fax: 351-1/388 16 94
MARKTEST - Marketing, Organizacao e Formacao Lda.
Rua de S. Jose 183-2
1150 Lisboa
Tel: 351-1/342 08 66
Fax: 351-1/346 08 94
NEDRO-NIELSEN-ESEO - Estudos de Mercado Lda.
Rua D. Filipa Vilhena 38
1000 Lisboa
Tel: 351-1/793 73 42
Fax: 351-1/793 72 87
PUBLICATIONS
The following publications are useful sources of economic and commercial
information:
Area Handbook for Portugal
Superintendent of Documents
U.S. Government Printing Office
Washington, D.C. 20402
TOP Export of Portugal
(English-Portuguese)
Jovitur, Lda.
Av. Infante Santo, 23 3 B
1300 Lisboa
Estatisticas Industrias
(Industrial Statistics)
Annuario Estatistico
(Statistical Yearbook)
Estatisticas do Comercio Externo
(Foreign Trade Statistics)
Instituto Nacional de Estatistica
Av. Antonio Jose de Almeida
1000 Lisboa
OECD Economic Surveys--Portugal
OECD Publications Center
1750 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
International Customs Journal--Portugal
International Customs Tariff Bureau
Rue de l'Association, 38
B-1000 Brussels, Belgium
Business Report
Portugal-U.S. Chamber of Commerce
5 West 45th Street
New York, NY 10036
APPENDIX F. MARKET RESEARCH
List of Available Industry Subsector Analysis ISAs
ISA Alarms and Warning Systems
ISA Business And Applications Software
ISA Cellular Telecom Equipment
ISA Crustacean Products
ISA Data Storage Equipment and Media
ISA Earth Moving Machinery
ISA Electrical Generating Equipment
ISA Fiber Optic Cable
ISA Finfish Products
ISA Franchising Automotive Maintenance Repair Services
ISA Franchising Services
ISA Miscellaneous Counting Devices And Numerical Controls
ISA Miscellaneous Farm Machinery and Equipment
ISA Miscellaneous Pre Recorded Videos
ISA Miscellaneous Toys and Games
ISA Orthopedic Appliances
ISA Point of Sales Equipment
ISA Pre Fabricated Building
ISA Refrigeration Equipment
ISA Small Domestic Electrical Appliances
ISA Sports Golf Clubs and Balls
ISA Small Recreational Boats
ISA Surgical Appliances and Supplies
List of Upcoming Industry Subsector Analysis (ISAS)
(1)
1. Industry subsector: Medical Equipment
2. Three letter ITA industry code: MED
3. Due date: November 1995
4. Country: Portugal
5. Researcher: Casimiro de Jesus
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(2)
1. Industry subsector: Equipment and Services for Upgrading/
Refurbishing of Power Generation Facilities
2. Three letter ITA industry code: EPS
3. Due date: December 1995
4. Country: Portugal
5. Researcher: Carmen Neves
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(3)
1. Industry subsector: Marine Fisheries Products (Seafood)
2. Three-letter ITA code :MFI
3. Due date: February 1996
4. Country: Portugal
5. Researcher: Celeste Conde
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(4)
1. Industry subsector: Heavy Construction Equipment
2. Three-letter ITA industry code: CON
3. Due date: March 1996
4. Country: Portugal
5. Researcher: Carmen Neves
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(5)
1. Industry subsector: Telecommunication Services Infrastructure
2. Three letter ITA industry code: Tel
3. Due date: March 1996
4. Country: Portugal
5. Researcher: Ana Paula Vila
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(6)
1. Industry subsector: Water Pollution Controls
2. Three letter ITA industry code: POL
3. Due date: April 1996
4. Country: Portugal
5. Researcher: Adolfo Coutinho
6. Estimate of workdays needed for research: 4 weeks
7. Previous ISA Title and date: Filtering or Purifying
Machinery and Apparatus,
(7)
1. Industry subsector: Cellular Telephony Infrastructure
2. Three letter ITA industry code: TEL
3. Due date: April 1996
4. Country: Portugal
5. Researcher: Casimiro de Jesus
6. Estimate of workdays needed for research: 4 weeks
7. N/A
(8)
1. Industry Sector: Recycling Equipment
2. Three letter ITA industry code: POL
3. Due date: June 1996
4. Country: Portugal
5. Researcher: Adolfo Coutinho
6. Estimate of workdays needed for research: 4 weeks
7. Previous ISA Title and date: Analytical Instruments,
List of Available IMIS
MAY BE RETRIEVED FROM THE (National Trade Data Bank or FocUS-Europe
Database)
IMI Alternative Energy Research
IMI Engineering Regulations in Portugal
IMI Environment Agency for Industrial Pollution Reform
IMI Environment APEA Environmental Engineers Association
IMI Environment AVE River Valley Development
IMI Environment Education Plans in Portugal
IMI Environment Environmental Market Background
IMI Environment Policy in Portugal
IMI Environment In Country Environmental Engineers Aveiro
IMI Environment In Country Environmental Engineers Minho
IMI Environment In Country Environmental Engineers Oporto
IMI Environment Integrated Pollution Prevention
IMI Environment Lipor Treatment of Solid Wastes in Oporto
IMI Environment Pollution Control at the Municipal Level
IMI Environment Proposal to Remedy the Rio de Aveiro
IMI Environment Recuperating Estarreja industrial Complex
IMI Environment Regional Government Decision Makers
IMI Environment Socio Cultural Aspects
IMI Environment Solid Hazardous Waste Overview
IMI Environment Waste Treatment Projects
IMI Environment Water Supply Projects in Portugal
IMI Expo 98 A Guide to American Business Opportunities
IMI Major Project Alqueva Dam Complex
IMI Major Project New Lisbon Airport
IMI Miscellaneous Alternative Energy Report
IMI Miscellaneous Engineering Regulations in Portugal
IMI Miscellaneous Opportunities for American Firms in Portugal
IMI Miscellaneous Portugal's Government Assistance to US Investors
IMI Miscellaneous Portugal's Policy Assisting US Exporters
IMI Opportunities For American Firms in Portugal
IMI PEDIP II Industrial Development Program 2 of 6
IMI PEDIP II Industrial Development Program 4 of 6
IMI PEDIP II Organization of Interest 1 of 6
IMI PEDIP II Organization of Interest 5 of 6
IMI PEDIP II Organization of Interest 6 of 6
IMI Portugal International Telecom Carrier Proposed
IMI Portugal Telecom Carrier Reorganization
IMI Portugal Telecommunications Overview
IMI Retex I Program for the TE Modernization of Textile Regions
IMI Roundup of Major Public Projects in Portugal
IMI Telecommunications Education
IMI Telecommunications Manufacturing
IMI Telecommunications Market Demand Infrastructure
IMI Telecommunications Market Demand Tourism
IMI The Portuguese Insurance Market
APPENDIX G. TRADE EVENT SCHEDULE
1. Event Name: HIGH TECH USA
2. Event Location: Lisbon, Oporto
3. Industry Theme: Telecommunication Equip.
4. Dates of Event: 02/96
5. Type of Event: RC
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