II.     LEADING TRADE PROSPECTS FOR U.S. BUSINESS

Given the security situation, best prospects are those markets which
offer U.S. exporters immediate sales opportunities that can be exploited
with minimum efforts.  Following is a short summary of best prospects;
Appendix B contains detailed market outlooks.

Agriculture:  Consecutive droughts have increased Algeria's reliance on
agricultural imports.  U.S. agricultural exports to Algeria have
averaged $700 million since 1990.  Best prospects for 1994-5 include
wheat, feedgrains, vegetable oils, and dairy products.  Demand for
tractors and other agricultural machinery is also expected to grow.

Oil and Gas Equipment and Machinery:  U.S. firms and technology dominate
this market.  Import demands are likely to remain high given Algeria's
$17 billion program to expand and diversify hydrocarbon production in
1994-8.

Telecommunications Equipment:  Algeria is modernizing and expanding its
telecommunications network.  Best prospects include transmission,
switching and radio equipment.

Water Resources Equipment:  Improving water supplies is a key element in
the drive to increase food production.  Best prospects include drilling
and irrigation equipment.

Computers:  U.S. technology dominates this market but exports have been
constrained by lack of financing.  Best prospects include
micro-computers, monitors and printers.

Pharmaceuticals:  Algeria imports the whole range of pharmaceuticals,
mostly from Europe.  GOA efforts to diversify suppliers offer U.S.
companies an opening.

Food Processing:  GOA efforts to increase food production are expected
to generate opportunities for sales of canning and packaging equipment,
and grain mill machinery.

Mining Equipment:  Algeria is now looking to lure foreign companies to
exploit its rich mineral deposits.  Best prospects include sorting,
screening, crushing and drilling equipment.

Building Products:  The construction sector is a high Algerian priority
in 1994.  Significant foreign exchange will be set aside for imports of
wood, cement, and specialty steel, all of which now are supplied mostly
from Europe.