II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS:

Foodstuffs and manufactured goods:  Bahamian tastes in consumer
products roughly parallel those in the United States, both because of
similities in culture and because the proximity of The Bahamas to the
U.S., the wide audience for domestic U.S. radio and television
broadcasts and periodicals which are easily received in The Bahamas,
and the ease and frequency of travel by Bahamians to Florida exposes
Bahamians to massive doses of American domestic advertising.  This
gives American producers, even of specialty products, an inherent
advantage over competitors from Europe or elsewhere in the Western
Hemisphere.  With approximately 85 percent of the population being of
primarily African descent, there is a large and growing market in The
Bahamas for "ethnic" personal care products aimed at the African-
American market.  Merchants in Southern Florida have found it
profitable to advertise in Bahamian publications, as the average
middle-income Bahamian makes several shopping trips to Florida every
year.  Bahamian consumer and safety regulations, where they exist, are
based on U.S. models and thus are not a barrier to exports of items
suitable for the domestic American market.
Most imports in this sector are subject to high but non-discriminatory
tariffs.  While foreign retail chains cannot open outlets in The Bahamas,
various distributorship and franchise arrangements are possible.

Vehicles and automobile parts:  Although Bahamians drive on the left
side of the road, and thus right-hand drive vehicles (such as domestic
Japanese and British models) have a slight advantage, there is no legal
restriction against left-hand drive (U.S. standard) vehicles, and the
majority of vehicles on Bahamian roads are American-made.  There is a
large market for second-hand U.S. vehicles, although these can only be
sold through local dealers.  Used limosines are particularly prized for
use as taxis.  Bahamian safety and pollution standards are less
restrictive than those in the United States.  Import tariffs, while high,
are non-discriminatory.

Hotel, restaurant, and medical supplies:  Tourism is the overwhelmingly
dominant industry, with more than 80 percent of tourists to The
Bahamas coming from the United States.  The market for supplies
familiar to American tourists is, therfore, predictably large.  With the
current slow recovery in tourism, tourist-oriented businesses are
particularly interested in goods which increase their efficiency and
lower costs.  Bahamian government efforts during the next few years to
sell off properties currently owned by the state-run Hotel Corporation
-- with the aim of eventually privatizing all government-owned hotels
and resorts -- should produce in the near future a number of new
owners interested in buying new supplies to spruce up decaying
properties.  In certain instances, the Hotels Encouragement Act allows
duty-free importation of hotel supplies for several years after the
original construction of a hotel or resort.

Computers and electronics:  Similar to the market for U.S. consumer
goods, described above.  The large, modern financial services sector is
a particularly good target.  High but non-discriminatory tariffs apply.
Goods which can be easily serviced either in The Bahamas
or in Florida will enjoy a competitive advantage over those which
cannot; service agents in The Bahamas must be Bahamians.