I.  COMMERCIAL OVERVIEW:

Belgium is a small country, approximately the size of Maryland, with a
population of ten million people.  It is situated at the crossroads of
Europe's land and air routes and borders on France, the Netherlands,
Germany, Luxembourg and, across the Channel, the United Kingdom.  Belgium
is the ninth largest trading nation in the world and belongs to the G-10
group of leading financial powers.  It is highly outward looking due to
its long history of reliance on international trade.  Because of this
history and the lack of natural resources, Belgian business both imports
and exports.  This is reflected in the fact that imports and exports are
each equivalent to nearly 70 percent of GDP, making Belgium one of the
highest per capita exporters in the world.  Belgium imports many basic or
intermediate goods, adds value, and then exports final products.
Belgium's major exports to the world are cars, electrical equipment, cut
diamonds, iron, plastic, organic chemical products and refined petroleum.
The country's main exports to the U.S. include diamonds, chemicals,
refined petroleum products, bicycles, textiles, steel, and steel products.
Main imports from the rest of the world are organic chemical products,
plastic, steel, rough diamonds, assembled cars and electrical equipment.
Major imports from the U.S. include petroleum products, transportation
equipment, diamonds, computers and related equipment and services.  About
75% of Belgium's foreign trade is with other EC countries, pointing up the
country's importance as a commercial axis in Western Europe.  Lying in the
heart of Europe and being a faithful adherent to EU integration policies,
Belgium stands to benefit greatly from the developing single market.

Belgium and the United States have strong reciprocal trade relations.
Belgium is the tenth largest market in the world for U.S. products and
took $8.9 billion in American exports in 1993, providing us with our
fourth largest trade surplus.  The Belgian market has great depth and
diversity in its import mix, with many excellent growth sectors.

Belgium has an excellent network of distributors, who are often regarded
by the French and Germans as a neutral source of goods.  Belgium is
blessed with an excellent transportation network of ports, railroads, and
highways.  Major U.S. air cargo carriers have created one of the first and
perhaps only European hub and spoke operation.  Due to its history and
location, Belgium is a true cultural microcosm of Europe, with three
linguistic communities: French, Dutch and German.  This diversity,
combined with its small, manageable size, makes Belgium an excellent test
market and subsequent launching pad for European operations of U.S.
businesses.  It is highly representative of the European market as a
whole, as much for its demographic aspects as for its life style.  Belgian
imports are equivalent to 69 percent of its gross domestic product (versus
a European average of 23 percent).  As a result, the Belgian market is
highly competitive.  The Belgian consumer has become used to the
introduction of new products and is quite discerning in his/her choice.

Belgium maintains an excellent investment climate for U.S. companies.
U.S. investment in Belgium - almost $11 billion - ranks 13th in the world.
The United States is the largest foreign investor in Belgium, which is
home to over 1,200 American companies, many of whom maintain European
headquarters in the country.  Since the end of World War II, American
businesses have played an active and important part in the Belgian
economy.  Foreign companies are treated exactly the same as Belgian
businesses.  There are no restrictions on repatriation of capital and
profits and no requirement that a Belgian national own part of the firm's
equity.  In a 1992 study performed by the KUL, a major Belgian university,
3,100 top industry and service companies in Belgium were examined.  These
companies represent 88% of the added value in the country; one third of
them are owned by foreigners.  The foreign companies are mainly from the
United States (25%), the Netherlands (17%), France (16%), Germany, and
Great Britain (both 12%).  A 1992 study by Ernst and Young concluded that
Belgium will be the second most popular site in Europe for investment over
the next five years.  The study also showed that Belgium ranked fourth out
of twenty two countries as a host to European subsidiaries or headquarters
of the 100 multinationals surveyed.

The rapid expansion of Brussels as the corporate decision center of Europe
and as a place for meetings and congresses has attracted over 1,300
European headquarters of foreign companies and institutions to Brussels -
597 of them American, followed by France, Great Britain, Germany, Japan,
Sweden, and Italy.  The Belgian government has adopted a number of
corporate tax incentives in order to make Belgium an attractive country
for foreign investors.  The tax authorities have established special
corporate tax rules for foreign companies intending to establish
coordination centers, distribution centers, or foreign sales corporations
in Belgium.  The success of these measures is indicated by the fact that
to date, 250 (of which 83 are of American origin) multinational companies
have adopted the status of coordination center.  Special legislation to
encourage multinationals to set up distribution activities in Belgium has
been approved more recently.  Brussels and other locations in Belgium are
regarded in a number of recent surveys as among the top ten locations for
a U.S. business in Europe.  The quality of Belgium's R and D facilities is
one of the reasons most cited for this high ranking.

Overall, government leaders at all levels are very supportive of open
trade and investment.  That does not, however, always translate into a
commercial environment easy for U.S. companies to understand or operate
in, and American companies do sometimes encounter trade or investment
problems.  Those problems often result from the Belgian penchant to
compromise and avoid confrontation.  They also sometimes result from the
unclear division of responsibilities among local, regional, and federal
authorities.  This lack of clear responsibility can lead to bureaucratic
delays and inaction.  It can also lead to inconsistent legislation and
implementation.