APPENDIX B. BEST PROSPECTS FOR U.S. EXPORTERS TO AUSTRIA (U.S.$ millions, unless otherwise noted) 1. Agricultural Sectors (Figures converted at the rate of USD 1 equalling Austrian Schillings 11.63.) A. Name of Sector: Tobacco B. PS&D Code: 21 1993 1994 1995 C. Total Market Size: 47.6 47.0 46.7 D. Total Local Production: 1.5 1.3 1.4 E. Total Exports: 2.4 1.8 1.9 F. Total Imports: 48.5 47.5 47.2 G. Total Imports from U.S.: 13.1 12.4 12.1 Comments: EU membership should not affect imports from the U.S. -------------------------------------------------------------- A. Name of Sector: Cotton B. PS&D Code: 04 1993 1994 1995 C. Total Market Size: 49.6 48.4 49.7 D. Total Local Production: 0 0 0 E. Total Exports: 0 0 0 F. Total Imports: 49.6 48.4 49.7 G. Total Imports from U.S.: 7.8 5.1 7.9 Comments: Since cotton imports into Austria and the EU are free, no change in imports from the U.S. is expected. Increased demand will lead to increased imports in 1995. ------------------------------------------------------------- A. Name of Sector: Rice B. PS&D Code: 11 1993 1994 1995 C. Total Market Size: 31.0 32.6 33.0 D. Total Local Production: 0 0 0 E. Total Exports: 0 0 0 F. Total Imports: 31.0 32.6 33.0 G. Total Imports from U.S.: 11.6 14.0 10.6 Comments: At present rice imports are free. After EU accession, a high levy on rice imports from third countries will lead to reduced imports from the U.S. -------------------------------------------------------------- A. Name of Sector: Beef B. PS&D Code: 52 1993 1994 1995 C. Total Market Size: 639.0 633.8 642.6 D. Total Local Production: 732.3 713.2 717.4 E. Total Exports: 110.4 91.7 88.0 F. Total Imports: 17.1 12.3 13.2 G. Total Imports from U.S.: 12.6 9.7 10.6 Comments: After EU accession, beef imports from the U.S. can only continue if the hormone dispute is resolved. -------------------------------------------------------------- 2. Industrial Sectors Best prospects are ranked by the greatest estimated two-year growth in U.S. Exports (1993-95). Inflation rate assumed: 1994: 3.0 % 1995: 2.5 % A. Rank: 1 B. Name of Sector: Drugs & Pharmaceuticals C. ITA Code: DRG 1993 1994 1995 D. Total Market Size: 1,432.8 1,585.1 1,763.1 E. Total Local Production: 1,094.3 1,171.9 1,261.3 F. Total Exports: 890.6 954.0 1,026.7 G. Total Imports: 1,229.1 1,367.2 1,527.5 H. Total Imports from U.S.: 122.9 151.9 194.6 I. Exchange Rate: 11.63 N/A N/A Comments: Drugs & Pharmaceuticals is one of the few sectors of the chemical industry which was able to increase production (4.5 percent in 1993). Total imports rose considerably by 9.1 percent, while U.S. products achieved a record increase of 50 percent. Pharmaceuticals from the United States enjoy an excellent reputation with respect to quality and safety. The Austrian market is highly receptive to U.S. imports in this field. ------------------------------------------------------------- A. Rank: 2 B. Name of Sector: Travel and Tourism (1) C. ITA Code: TRA 1993 1994 1995 D. Total Market Size: 164,095 180,500 207,600 E. Total Local Production: N/A N/A N/A F. Total Exports: N/A N/A N/A G. Total Imports: N/A N/A N/A H. Total Imports from U.S.: N/A N/A N/A I. Exchange Rate: 11.63 N/A N/A Comments: Due to inexpensive packages offered by tour operators and airlines and the favorable exchange rate between the Austrian Schilling and the U.S. dollar, tourism from Austria to the United States increased by nine percent in 1993 compared to 1992. (1) Figures denote number of persons traveling to the U.S. -------------------------------------------------------------- A. Rank: 3 B. Name of Sector: Aircraft and Parts C. ITA Code: AIR 1993 1994 1995 D. Total Market Size: 149.2 165.6 190.2 E. Total Local Production: 63.0 70.1 80.5 F. Total Exports: 50.0 55.6 63.8 G. Total Imports: 136.2 151.1 173.5 H. Total Imports from U.S.: 96.3 107.1 123.0 I. Exchange Rate: 11.63 N/A N/A Comments: Demand for aircraft is expected to rise in 1994-95 because of the replacement of old equipment. Austria produces only motor gliders, no commercial or passenger aircraft. The U.S. position is still very strong in this market segment, although Austrian Airlines decided in 1992 to replace its McDonnell Douglas fleet with Airbus aircraft, engines and electronics will be of U.S. manufacture. Lauda Air remains loyal to Boeing. ------------------------------------------------------------- A. Rank: 4 B. Name of Sector: Computer Software (including Services) C. ITA Code: CSF 1993 1994 1995 D. Total Market Size: 2,555 2,842 3,116 E. Total Local Production: 1,410 1,569 1,720 F. Total Exports: 300 334 366 G. Total Imports: 1,445 1,607 1,762 H. Total Imports from U.S.: 291 324 355 I. Exchange Rate: 11.63 N/A N/A Comments: Software still shows substantial growth rates through 1995. PC application software has the highest potential, followed by application aid standard software. U.S. application software dominated the Austrian market in 1993. U.S. import market share is estimated at 65 percent. ------------------------------------------------------------- A. Rank: 5 B. Name of Sector: Automobiles and Light Trucks/ Vans C. ITA Code: AUT 1993 1994 1995 D. Total Market Size: 3,474 3,758 4,122 E. Total Local Production: 942 1,019 1,118 F. Total Exports: 1,441 1,558 1,709 G. Total Imports: 3,973 4,287 4,713 H. Total Imports from U.S.: 33 36 39 I. Exchange Rate: 11.63 N/A N/A Comments: The market for automobiles is expected to grow by about 5.7 percent through 1995. Medium-sized passenger cars have the highest sales potential. Germany is the main source of imports, while U.S. imports in this sector are marginal. Austria is a transit-trade country, therefore, imports are higher than total market size. ------------------------------------------------------------- A. Rank: 6 B. Name of Sector: Electronic Components C. ITA Code: ELC 1993 1994 1995 D. Total Market Size: 778.0 883.1 996.3 E. Total Local Production: 826.5 910.9 999.0 F. Total Exports: 842.0 910.5 979.9 G. Total Imports: 793.5 882.7 977.2 H. Total Imports from U.S.: 78.0 84.4 90.8 I. Exchange Rate: 11.63 N/A N/A Comments: The 1993 U.S. import market share of electronic components was 9.8 percent. Highly sophisticated U.S. made active components have good opportunities in the Austrian market in the future. A great share of Austrian components imports are from U.S. firms manufacturing in the EU or the Far East. The Austrian market for ASIC's (application specific integrated circuits) continued to develop positively. ------------------------------------------------------------- A. Rank: 7 B. Name of Sector: Telecommunications Equipment C. ITA Code: TEL 1993 1994 1995 D. Total Market Size: 821.1 866.2 922.2 E. Total Local Production: 660.8 694.2 732.9 F. Total Exports: 194.8 204.7 216.1 G. Total Imports: 355.1 376.7 405.4 H. Total Imports from U.S.: 36.7 38.9 41.5 I. Exchange Rate: 11.63 N/A N/A Comments: Telecommunications is still one of the fastest growing and most competitive industry sectors. The market is characterized by innovation and declining prices. The Austrian PTT realizes that the quiet times of its past monopolistic position are over. The European calendar of deregulation and liberalization as requested in EU directives must be met. After Austria's entry into the EU in January 1995, telecommunications equipment approved in other EU countries will be considered as certified in Austria as well. This will facilitate imports considerably and will offer good opportunities for U.S. suppliers of high-quality, competitive products. ------------------------------------------------------------- A. Rank: 8 B. Name of Sector: Security and Safety Equipment C. ITA Code:SEC 1993 1994 1995 D. Total Market Size: 101.0 106.1 112.0 E. Total Local Production: 29.1 30.6 32.3 F. Total Exports: 23.2 24.4 25.8 G. Total Imports: 95.1 99.9 105.5 H. Total Imports from U.S.: 1.7 1.8 1.9 I. Exchange Rate: 11.63 N/A N/A Comments: Increasing crime, particularly burglaries, white collar and computer crimes, create demand for highly sophisticated security equipment. Many Austrian museums, art galleries and churches have a great pent-up demand for modern security installations. ------------------------------------------------------------- A. Rank: 9 B. Name of Sector: Process Controls - Industrial C. ITA Code: PCI 1993 1994 1995 D. Total Market Size: 217.8 227.7 237.2 E. Total Local Production: 137.9 143.4 149.1 F. Total Exports: 90.2 93.8 98.1 G. Total Imports: 170.1 178.1 186.2 H. Total Imports from U.S.: 17.9 19.0 20.1 I. Exchange Rate: 11.63 N/A N/A Comments: U.S. manufacturers of industrial process control equipment have good opportunities with highly sophisticated state-of-the-art computerized process controls which are very important tools to help industry meet Austria's and the EU's environmental protection standards. An estimated average annual real growth of three percent over the next two years can be assumed for imports from the U.S. The 1993 U.S. import share amounted to 10.5 percent, putting the U.S. in third place behind Germany and Switzerland. ------------------------------------------------------------- A. Rank: 10 B. Name of Sector: Medical Equipment C. ITA Code: MED 1993 1994 1995 D. Total Market Size: 331.5 358.6 385.9 E. Total Local Production: 142.0 153.6 165.3 F. Total Exports: 175.5 189.8 204.3 G. Total Imports: 365.0 394.8 424.9 H. Total Imports from U.S.: 45.0 47.3 49.7 I. Exchange Rate: 11.63 N/A N/A Comments: Demand for medical equipment will grow slowly in the future as most large hospital projects have been completed. There are still some modernization projects for medium size hospitals in the provinces which are expected to generate demand for new equipment through the end of the decade. There are some interesting possibilities for U.S. manufacturers of hospital equipment, using Austrian general contractors for hospital modernization projects in Central & Eastern Europen countries. U.S. manufacturers of sophisticated electro-medical equipment, including scanners, pacemakers and computer tomographs have continuing opportunities in the Austrian market. ------------------------------------------------------------- A. Rank: 11 B. Name of Sector: Laboratory Equipment C. ITA Code: LAB 1993 1994 1995 D. Total Market Size: 167.4 175.9 185.4 E. Total Local Production: 92.9 97.6 102.5 F. Total Exports: 119.7 125.7 131.4 G. Total Imports: 194.2 204.0 214.3 H. Total Imports from U.S.: 23.9 25.1 26.2 I. Exchange Rate: 11.63 N/A N/A Comments: Domestic production of laboratory instruments cannot meet the Austrian demand, resulting in a high import volume. Local manufacturers are known for their high-quality products in the less sophisticated sector. High-tech instruments from the U.S. enjoy an excellent reputation. U.S. suppliers will find good opportunities for state-of-the-art instruments, such as spectrophotometers, analysis apparatus, oscilloscopes, etc. Applications in the food and environmental sectors will become increasingly important as will quality control equipment. ------------------------------------------------------------- A. Rank: 12 B. Name of Sector: Industrial Chemicals C. ITA Code: ICH 1993 1994 1995 D. Total Market Size: 908 961 1,010 E. Total Local Production: 844 878 918 F. Total Exports: 566 572 592 G. Total Imports: 630 655 684 H. Total Imports from U.S.: 42 44 46 I. Exchange Rate: 11.63 N/A N/A Comments: 1993 saw a dramatically reduced production in the Austrian chemical industry for the fifth year in succession. Total production of industrial chemicals dropped by ten percent against the previous year. In spite of this decline, the chemical industry is still the third largest industry sector. U.S. imports suffered also from the recession and dropped by two percent. Market opportunities exist for specialty and advanced industrial fine chemicals. ------------------------------------------------------------- A. Rank: 13 B. Name of Sector: Pollution Control Equipment C. ITA Code: POL 1993 1994 1995 D. Total Market Size: 4,299.2 4,516.8 4,777.8 E. Total Local Production: 3,869.2 4,065.0 4,291.6 F. Total Exports: 860.0 903.5 944.6 G. Total Imports: 1,290.0 1,355.3 1,430.8 H. Total Imports from U.S.: 38.7 40.6 42.4 I. Exchange Rate: 11.63 N/A N/A Comments: Expenditure on environmental protection in Austria is equivalent to 2.6 percent of the country's GDP. This puts Austria among the world's leaders in this field. As Austrian official statistics do not separately show pollution control equipment, above figures are estimates of industry experts. According to those estimates, the U.S. import share amounts to two percent. Market opportunities exist for measuring and control instruments as well as for biological soil remediation. ------------------------------------------------------------- A. Rank: 14 B. Name of Sector: Plastic Materials & Resins C. ITA Code: PMR 1993 1994 1995 D. Total Market Size: 975.0 1,013.3 1,068.8 E. Total Local Production: 692.8 713.6 746.1 F. Total Exports: 595.3 613.2 641.1 G. Total Imports: 877.5 912.9 963.8 H. Total Imports from U.S.: 30.0 31.2 32.3 I. Exchange Rate: 11.63 N/A N/A Comments: There are two main issues currently facing the Austrian plastics industry: the general economic recession and the impact of the new packaging waste regulation which became effective in October 1993. The new law requires manufacturers to take back and recycle all packaging material used in their products. The regulation applies to domestically manufactured as well as imported products and is likely to have serious implications on the choice of materials used for packaging goods. In 1993, the Austrian production of plastic materials and resins remained stable in volume, however dropped by ten percent in value. Imports from the U.S. declined by 20 percent, but were able to hold their import share at four percent. Market opportunities exist in particular for high-tech engineering plastics and special products. ------------------------------------------------------------- A. Rank: 15 B. Name of Sector: Computers & Peripherals C. ITA Code: CPT 1993 1994 1995 D. Total Market Size: 1,205.0 1,228.8 1,221.0 E. Total Local Production: 10.0 10.2 10.0 F. Total Exports: 194.0 197.8 196.9 G. Total Imports: 1,389.0 1,416.4 1,407.9 H. Total Imports from U.S.: 270.0 275.3 273.4 I. Exchange Rate: 11.63 N/A N/A Comments: Sales of computers and peripherals are expected to decline in value, due to significant price reductions and demand for low cost equipment. There was a decline in 1993 vis-a-vis 1992 of seven percent. Austria is a transit-trade country, therefore, imports are higher than total market. ------------------------------------------------------------- APPENDIX C. U.S. & AUSTRIAN CONTACTS 1. Austria Government Agencies Embassy of Austria in the United States 3524 International Court Washington, DC 20008 Telephone: (202) 895-6700 Federal Agency for Industrial Cooperation and Development In the USA: In Austria: ICD Austria ICD Austria Ges.m.b.H. 747 Third Avenue Opernring 3 New York, NY 10017 A-1010 Vienna, AUSTRIA Tel: (212) 980-7970 Austrian Ministry of Agriculture and Forestry Stubenring 1 A-1010 Vienna, AUSTRIA Tel: (43 1) 71 100-0 Austrian Economic Ministry Stubenring 1 A-1010 Vienna, AUSTRIA Tel: (43 1) 71 100-0 2. Austrian Trade Associations/ Chambers of Commerce Austrian Trade Commission operates offices in the USA at the following locations: 150 East 52nd Street 32nd Floor New York, NY 10022 Tel: (212) 421-5250 Fax: (212) 751- 4675 500 North Michigan Avenue 1300 Post Oak Blvd. Suite 1950 Suite 1700 Chicago, IL 60611 Houston, TX 77056 Tel: (312) 644-5556 Tel: (713) 850-8888 Fax: (312) 644-6526 Fax: (713) 850-7857 11601 Wilshire Blvd. 1350 Connecticut Avenue N.W. Suite 2420 Suite 501 Los Angeles, CA 90025 Washington, DC 20036 Tel: (310) 477-9988 Tel: (202) 835-8962 Fax: (310) 477-1643 Fax: (202) 835-8960 American Chamber of Commerce in Austria Porzellangasse 35 A-1090 Vienna, AUSTRIA Tel: (43 1) 319 57 51 Fax: (43 1) 319 51 51 Fachverband der Elektro- und Elektronikindustrie Oesterreichs (Association of the Electric and Electronic Industry) Mariahilfer Strasse 37-39 A-1060 Vienna, Austria Tel: (43 1) 588 39-0 Fax: (43 1) 586 69 71 ADV Arbeitsgemeinschaft fur Datenverarbeitung (EDP Association) Tratternhof 2 A-1010 Vienna, Austria Tel: (43 1) 533 09 13 Fax: (43 1) 533 09 13-77 Oesterreiche Computer Gesellschaft (Austrian Computer Association) Wollzeile 1-3 A-1010 Vienna, Austria Tel: (43 1) 512 02 35 Fax: (43 1) 513 77 35 3. Austrian Market Research Firms Consent Betriebsberatung Ges.m.b.H Dommayergasse 4 A-1130 Vienna, Austria Tel: (43 1) 877 30 03-0 Fax: (43 1) 876 47 04 Dr. Fessel GfK Institut fur Marktforschung Franz-Josefs Kai 47 A-1010 Vienna, Austria Tel: (43 1) 534 96 Fax: (43 1) 534 96-194 GmB Gesellschaft fur Marketingberatung Arnethgasse 50 A-1160 Vienna, Austria Tel: (43 1) 45 57 01 Integral Markt- und Meinungsforschungs Ges.m.b.H. Mohsgasse 2/6 A-1030 Vienna, Austria Tel: (43 1) 799 19 94-0 Fax: (43 1) 799 19 94-18 Institut fur Markt- und Meinungsforschung Ges.m.b.H. Kaiserstrasse 55 A-1070 Vienna, Austria Tel: (43 1) 526 55 84-0 Fax: (43 1) 526 55 84-42 Dr. Alkier Ges.m.b.H. Lindengasse 10 A-1070 Vienna, Austria Tel: (43 1) 523 62 63 Fax: (43 1) 523 92 65 4. Austrian Commercial Banks The major Austrian banks are: Creditanstalt-Bankverein AG Bank Austria AG Schottengasse 6 Am Hof 2 A-1010 Vienna A-1010 Vienna Austria Austria Telephone: (43 1) 531 31-0 Telephone: (43 1) 531 24-0 Fax: (43 1) 531 31-46 99 Girocredit Bank AG Raiffeisen Zentralbank Shubertring 5 Oesterreich AG A-1011 Vienna Am Stadtpark 9 Austria A-1030 Vienna Telephone: (43 1) 711 94-0 Austria Fax: (43 1) 713 70 32 Telephone: (43 1) 717 07-0 Fax: (43 1) 717 07-1715 5. U.S. & Foreign Commercial Service U.S. Embassy in Austria U.S. Foreign Agricultural Service Boltzmanngasse 16 Boltzmanngasse 16 A-1091 Vienna, Austria A-1091 Vienna, Austria Telephone: (43 1) 313 39 Telephone: (43 1) 313 -39 Facsimile: (43 1) 310 69 17 Facsimile: (43 1) 310-8208 Telex: 114634 To mail from the United States: American Embassy Vienna Department of State Washington, DC 20521-9900 6. Washington-Based U.S. Government Contacts Mr. Phil Combs Austria Desk/IEP, Room 3043 U.S. Department of Commerce 14th & Constitution Ave. Washington, DC 20230 Tel: (202) 482-2920 Fax: (202) 482-2897 Merritt Chesley Inter-America & Western Europe Division Room 5520 U.S. Department of Agriculture Washington, DC 20250-1000 Tel: (202) 720-1322 7. U.S.-Based Multipliers The Association for Manufacturing Technology 7901 Westpark Dr. McLean, VA 22102-4269 Tel: (703) 893-2900 Health Industry Manufacturers Association 1200 G. Street, N.W. Suite 400 Washington, DC 20005 Tel: (202) 783-8700 American Electronics Association 5201 Great America Parkway 1225 Eye Street, N.W. Santa Clara, CA 95054 Washington, DC 20005 Tel: (408) 987-4200 Tel: (202) 682-9110 Dental Manufacturers of America 1118 Land Title Bldg. Broad & Chesnut Cst. Philadelphia, PA 19110 Tel: (215) 563-2588 National Electrical Manufacturers Association Diagnostic Imaging & Therapy Systems Div. 2101 L Street, N.W. Suite 300 Washington, DC 20037 Tel: (202) 457-8400 U.S.-Austrian Chamber of Commerce 165 West 46th Street, Rm. 1112 New York, NY 10036 Tel: (212) 819-0117