APPENDIX B1. DATA ON BEST PROSPECTS FOR U.S. INDUSTRY SECTOR EXPORTS TO BELGIUM (All data on the following charts for 1994 and 1995 are estimated.) Best Prospects A. Rank: 1 B. Name of Sector: Pollution Control Equipment C. ITA or PS&D Code: POL 1993 1994 1995 D. Total Market Size 1,080 1,620 1,800 E. Total Local Production 600 900 1,000 F. Total Exports 120 180 200 G. Total Imports 600 900 1,000 H. Total Imports from U.S. 60 90 100 I. Exchange Rate 32 33.5 34 Comments: Belgium, as one of the most densely industrialized and populated areas in the world, is vulnerable to numerous pollution problems. The market for pollution control equipment is driven both by EU directives, which Belgium is now actively transposing into its own regulations, and by unabated conservationists' pressure. During 1993, Belgian organizations spent $1.6 billion on polution control. Sixty-two percent of Belgian companies are planning environmentally related investment in equipment of at least $32,000 per company over the next two years. Half of these firms are further planning to invest more than $150,000 each during this same period. Best sub-sectors include equipment for filtering and processing effluents, water and gas analysis instruments, programmable process controls, sludge treatment technologies and recycling equipment. A. Rank: 2 B. Name of Sector: Telecommunication Services C. ITA or PS&D Code: TES 1993 1994 1995 D. Total Sales in Country 3,536 4,066 4,840 E. Sales by Local Firms 2,758 3,144 3,680 F. Exports by Local Firms N/A G. Sales by Foreign-owned 778 910 1,160 Firms H. Sales by U.S.-owned 480 566 668 Firms I. Exchange Rate 32 33.5 34 Comments: The Belgian RTT became an autonomous government-owned company in 1992 and was renamed BELGACOM. Belgacom still has a monopoly on the country's basic telephone services until 1998. All other value-added network services (vans) are subject to free market competition. The new regulatory framework and the proliferation of new telecommunications services have opened up the telecommunications services market to U.S. business. Belgacom and the Minister of Communications are currently studying the possibilities for the strategic consolidation (privatization) of the state telecom firm. The privatization is expected to be completed before the end of 1994. Belgacom is actively looking for telecommunications service providers to help them develop customer, information technology, and value-added services. The most promising subsectors and their 1993 sales are value-added network services (vans) $600 million, customer services $500 million, and mobile communication services $440 million. A. Rank: 3 B. Name of Sector: Aircraft and Parts C. ITA or PS&D Code: Air 1993 1994 1995 D. Total Market Size 562 616 720 E. Total Local Production 147 154 169 F. Total Exports 35 38 49 G. Total Imports 450 500 600 H. Total Imports from U.S. 225 250 300 I. Exchange Rate 32 33.5 34 Comments: Sabena, with its subsidiaries DAT and Sobelair, is the only significant carrier in Belgium. Air France has purchased 37.5 percent of Sabena's capital and is gradually reorganizing Sabena's operations. One of its divisions, Sabena Technics, is the main beneficiary of this consolidation. Besides maintenance operations, local production is limited to the manufacture of wing parts for various Airbus and Fokker models and components for the CFM-56 engine in addition to military aircraft retrofitting and modernization. Best sub-sectors include training services and simulators, spare parts for both the military and civil aircraft, and avionics for retro-fitting. A. Rank: 4 B. Name of Sector: Building Products C. ITA or PS&D Code: BLD 1993 1994 1995 D. Total Market Size 12,650 11,954 12,108 E. Total Local Production 11,000 10,395 10,530 F. Total Exports 1,100 1,039 1,053 G. Total Imports 2,750 2,598 2,631 H. Total Imports from U.S. 46 60 60 I. Exchange Rate 32 33.5 34 Comments: In addition to the softwood plywood, where U.S. industry supplies 100% of the market ($30 million for the Belgian market, plus $9 million for reexport), there is also good potential for a limited number of innovative U.S. building products listed below. Forty thousand new homes are built annually in Belgium. However, building patterns are very different from those in the United States in that only ten percent of Belgian homes are prefabricated. However, this number is steadily increasing. Although interest rates on mortgage loans have come down to 7.25%, demand remains sluggish. Best subsectors include plywood and particle board, roofing products, building sealants, do-it-yourself building sub-components and intrusion alarm systems. A. Rank: 5 B. Name of Sector: Computer Software C. ITA or PS&D Code: CSF 1993 1994 1995 D. Total Market Size 1,462 1,622 1,800 E. Total Local Production 553 608 675 F. Total Exports 300 328 378 G. Total Imports 1,209 1,342 1,503 H. Total Imports from U.S. 626 695 778 I. Exchange Rate 32 33.5 34 Comments: The Belgian software market is following the U.S. market very closely. New product announcements in the U.S. by the leading suppliers are introduced in Belgium with only a couple of months' delay. Belgian importers, distributors, and VARs are scouting major U.S. trade shows such as Comdex/Fall for new products every year. Belgian companies and government institutions continue to invest in information technology projects. U.S. publishers of advanced packaged software for PCs and Unix workstations should find an expanding market in Belgium. The most promising subsectors and their 1993 sales are software development tools $187 million, production and inventory control software $135 million, networking software $97 million, electronic document management $35 million, and computer security software. A. Rank: 6 B. Name of Sector: Telecommunications Equipment C. ITA or PS&D Code: TEL 1993 1994 1995 D. Total Market Size 2,488 2,612 2,795 E. Total Local Production 1,315 1,352 1,420 F. Total Exports 716 823 946 G. Total Imports 1,889 2,083 2,321 H. Total Imports from U.S. 129 143 159 I. Exchange Rate 32 33.5 34 Comments: BELGACOM, the Belgian state-owned telecom company, is continuously investing in the modernization of its networks. BELGACOM's new pan- European networks for ISDN services, paging, and GSM mobile services are now in place and 100 percent coverage of the country is foreseen by the end of 1994. BELGACOM also has MAN networks in Brussels and Antwerp. AN ATM pilot network in the Brussels area is currently being evaluated by pilot users. A second GSM license will be awarded in 1994. Advanced business communications equipment is selling well. This segment is characterized by declining prices and shrinking margins. While the infrastructure equipment market was traditionally in the hands of the national champions of Alcatel and Siemens, the current management of BELGACOM now is committed to purchasing those products and systems that have the best price-performance ratio. The most promising subsectors and 1993 market size are ISDN terminal equipment $1.3 billion, broadcasting equipment $162 million, and voice processing systems $23 million, and ISDN equipment $20 million. A. Rank: 7 B. Name of Sector: Computer Services C. ITA or PS&D Code: CSV 1993 1994 1995 D. Total Sales in Country 1,762 1,921 2,132 E. Sales by Local Firms 952 1,030 1,135 F. Exports by Local Firms N/A G. Sales by Foreign-owned 810 891 997 Firms H. Sales by U.S.-owned 421 463 518 Firms I. Exchange Rate 32 33.5 34 Comments: Belgian companies continue to invest more financial resources for their software and services neede. During 1992, their investment budgets for software and services were increased by 15%, and by 14% in 1993. In 1991, Belgian companies spent on average 1.51% of their income on software and services. For banks and insurance companies, that figure is even higher and ammounts respectively to 1.7% and 3.3% Belgian companies allocate 50 percent of their information technology budgets to software and services which were $3 billion in 1993. Some 2,000 computer service companies are currently active in the Belgian market compared to 800 in 1986. The most promising subsectors and 1993 market size are systems development $337 million, systems management $196 million, computer integration $130 million, and facilities management $87 million. A. Rank: 8 B. Name of Sector: Medical Equipment C. ITA or PS&D Code: MED 1993 1994 1995 D. Total Market Size 561 639 668 E. Total Local Production 74 80 81 F. Total Exports 10 12 13 G. Total Imports 497 571 600 H. Total Imports from U.S. 99 114 120 I. Exchange Rate 32 33.5 34 Comments: Overall, the sophistication and quality of medical services in Belgium match that of any other country in northern Europe. In addition, Belgium has a well developed national medical insurance system covering almost the entire population. The tendency is toward ready acceptance of U.S.- sourced equipment, especially that with FDA approval. Most promising sub- sectors include electro-diagnostic apparatus, infant care equipment, intensive care equipment, all medical systems and equipment allowing shorter stays in the hospital, non-invasive techniques reducing the need for surgery, and advanced medical imagery systems. A. Rank: 9 B. Name of Sector: Travel and Tourism Services C. ITA or PS&D Code: TRA 1993 1994 1995 D. Total Sales in Country 9,800 9,910 10,015 E. Sales by Local Firms 2,880 2,935 2,980 F. Exports by Local Firms N/A G. Sales by Foreign-owned 6,920 6,975 7,035 Firms H. Sales by U.S.-owned Firms 295 325 350 I. Exchange Rate 32 33.5 34 Comments: The number of visitors from Belgium to the United States has increased steadily since the Gulf War in 1991 and the outlook is for further annual growth of about eight percent for at least the next three to five years. The number of visitors is as follows (000): 1992 1993 1994e 1995e 170 185 201 218 The main factors for this pattern of steady growth are the current low dollar exchange rate, severe competition among the airlines on transatlantic routes, strong media support (especially from T.V. programs and movies for the American life-style), and a sense of security for travellers at a time when many vacation countries are in war or terrorist danger areas. Fly-and-drive packages, mobile-home vacations and youth travel are major growth sectors. The Visit USA tourist information center located on the prestigious Avenue Louise serves both the travel trade and the general public. U.S. suppliers of travel and tourism services wanting exposure in the Belgium market should contact the Visit USA tourist information center through the U.S. Embassy, Brussels. A. Rank: 10 B. Name of Sector: Laboratory Scientific Instruments C. ITA or PS&D Code: LAB 1993 1994 1995 D. Total Market Size 198 218 229 E. Total Local Production 0 0 0 F. Total Exports inc. Reexports 22 24 25 G. Total Imports 220 242 254 H. Total Imports from U.S. 110 121 127 I. Exchange Rate 32 33.5 34 Comments: All major U.S. and European multinational chemical companies have a presence in Belgium, either with manufacturing facilities or with European headquarters. The chemical/pharmaceutical industry plays an all-important role in Belgium, with annual sales of $27 billion. In addition to this industry, other users of scientific instruments are Belgium's seven universities and numerous companies engaged in biotechnology. Increasing constraints imposed by quality control to implement ISO 9000 certification, as well as stringent pollution control regulations are vigorously driving this market. The most promising subsectors and 1993 market size are instruments and apparatus for physical or chemical analysis such as polarimeters, refractometers, spectrometers $28million, and measuring/checking instruments $15 million. A. Rank: 11 B. Name of Sector: Sporting Goods and Recreational Equipment C. ITA or PS&D Code: SPT 1993 1994 1995 D. Total Market Size 780 778 788 E. Total Local Production 707 701 712 F. Total Exports 32 27 30 G. Total Imports 105 104 106 H. Total Imports from U.S. 7 6 8 I. Exchange Rate 32 33.5 34 Comments: The sporting goods market suffered in 1992/93 in line with the economic recession, which affected Belgium and most other European countries. Retail sales in general showed no growth, with consumer products registering declines in most sectors. The outlook, from the end of 1994 onwards, is for a steady increase, with some pent-up demand boosting consumer sales, including sporting goods, in 1995/96. EU member states remain Belgium's main suppliers of sporting goods, although Far East sourced goods are now capturing the market in such areas as rackets (tennis, squash, badminton etc.) and bicycles. U.S. sporting goods are market leaders in tennis and golf. U.S. football is a growth sport in Belgium. A. Rank: 12 B. Sector: Seafood C. ITA or PS&D Code: MFI 1993 1994 1995 D. Total Market Size 595 622 650 E. Total Local Production 41 41 42 F. Total Exports inc. Reexports 162 159 167 G. Total Imports 722 740 775 H. Total Imports from U.S. 13.5 14.2 15 I. Exchange Rate 32 33.5 34 Comments: Per capita consumption of seafood in Belgium reached a high of 19.5 kilos in 1993, an 18% increase since 1985. The traditional fresh fish business is still strong but there is also a trend evolving towards high profile, high quality value-added products. Belgium is an excellent distribution center for much of Europe. Most promising subsectors are lobster, salmon, and catfish (which have not yet entered the market but which trade sources consider a good prospect). A. Rank: 13 B. Name of Sector: Printing and Graphic Art Equipment C. ITA or PS&D Code: PGA 1993 1994 1995 D. Total Market Size 550 565 580 E. Total Local Production 17 16 15 F. Total Exports inc Reexports 141 145 150 G. Total Imports 674 694 715 H. Total Imports from U.S. 198 208 218 I. Exchange Rate 32 33.5 34 Comments: The printing and graphic art equipment sector is to be divided into the following two distinct subsectors: - Electronic publishing equipment which has been growing extremely quickly in the last years. The United States market share is 60 percent. Companies with the latest technology will find strong interest. - "Mechanical" equipment such as presses and bookbinding equipment. This sector is characterized by an overwhelming presence of German equipment. The United States only has a two percent market share and European competition is extremely strong. A. Rank: 14 B. Name of Sector: Computer and Peripherals C. ITA or PS&D Code: CPT 1993 1994 1995 D. Total Market Size 1,850 1,813 1,858 E. Total Local Production 234 225 223 F. Total Exports inc Reexports 363 361 362 G. Total Imports 1,979 1,949 1,997 H. Total Imports from U.S. 419 423 436 I. Exchange Rate 32 33.5 34 Comments: The outlook for the Belgian computer hardware market continues to be one of growth, albeit small growth in value terms. Belgian companies and government institutions continue to make investments to automate their office and workshop environments. Companies are downsizing and decentralizing their computer infrastructure. Belgian importers, distributors, and VARS are scouting major U.S. computer technology shows every year to find new products. Hardware of American design accounts for 60 percent of the total market, estimated at $2 billion in 1993, but a large portion of these computers and peripherals are either manufactured in Europe or in the Far East. The most promising subsectors and 1993 market size are personal computers and portables $467 million, terminals $126 million, datacommunications equipment $63 million, and optical media $40 million. A. Rank: 15 B. Name of Sector: Automotive Parts and Service Equipment C. ITA or PS&D Code: APS 1993 1994 1995 D. Total Market Size 3,600 2,880 3,774 E. Total Local Production 2,000 1,600 2,080 F. Total Exports 600 480 624 G. Total Imports 2,200 1,760 2,288 H. Total Imports from U.S. 110 88 114 I. Exchange Rate 32 33.5 34 Comments: Belgium has a relatively large automobile market as well as automotive parts, and equipment market compared to the low number of inhabitants (10 million). The total number of cars registered is 3.9 million. In addition, it has a very strong assembly industry (GM, Ford, VW, Volvo, and Renault) that assembles 1.2 vehicles annually. A significant number of parts are procured locally. Typically, Europeans in general, and Belgians in particular, tend to keep their cars longer than Americans. In Belgium, 54% of cars are over five years old. Sales of new cars decreased 20% in 1993. The market for 1994 shows signs of recovery. Best sub-sectors include anti-theft devices; fast-rotating replacement parts such as filters, brake pads, and light bulbs; gadgets for in-car entertainment; car enhancement and maintenance products; and high-performance garage and test equipment. A. Rank: 16 B. Name of Sector: Textile Fabrics C. ITA or PS&D Code: TXF 1993 1994 1995 D. Total Market Size 2,100 1,980 2,100 E. Total Local Production 4,350 4,300 4,450 F. Total Exports 4,065 3,930 4,150 G. Total Imports 1,815 1,610 1,800 H. Total Imports from U.S. 84 83 86 I. Exchange Rate 32 33.5 34 Comments: The Belgian textile fabrics sector is currently undergoing a period of restructuring. Local production is strongly oriented towards exports, which were (including re-exports) $ 3.5 billion in 1992. U.S. fabrics, especially for the furnishing sector, have a good price/quality/design reputation. A U.S. Dept. of Commerce (OTEXA) pavilion is planned at the international DECOSIT furnishing fabrics trade show in Brussels on September 4-7, 1994. The most promising subsectors are furnishing fabrics $1.0 billion and non-woven fabrics, especially for industrial use $290 million. A. Rank: 17 B. Name of Sector: Plastic Materials and Resins C. ITA or PS&D Code: PMR 1993 1994 1995 D. Total Market Size 2,900 2,850 2,890 E. Total Local Production 26,400 26,000 26,300 F. Total Exports 25,800 25,380 25,690 G. Total Imports 2,300 2,230 2,280 H. Total Imports from U.S. 165 160 168 I. Exchange Rate 32 33.5 34 Comments: Belgium is a major producer and exporter of plastic materials and resins, as well as an important market for imports for its plastics converting industry. The market for plastic materials and resins declined in 1992/93 as a result of the economic recession which affected most of Europe. The industry is currently undergoing a period of extensive restructuring, but is expected to return to growth rates of two to three percent by 1995, when the economic outlook is forecast to improve. This will also lead to an improvement in imports, with the U.S. well-placed to take advantage of present low dollar exchange rates to increase market share. A. Rank: 18 B. Name of Sector: Apparel C. ITA or PS&D Code: APP 1993 1994 1995 D. Total Market Size 3,100 2,900 3,050 E. Total Local Production 1,700 1,600 1,800 F. Total Exports 1,000 985 1,050 G. Total Imports 2,400 2,285 2,300 H. Total Imports from U.S. 84 82 85 I. Exchange Rate 32 33.5 34 Comments: The Belgian market was hit by the reduction in consumer spending in 1992/93 as a result of the economic recession that has affected most of Europe. An improvement is forecast from the end of 1994 onwards with some pent-up demand expected in 1995 if the economic upturn shows real strength. The best potential for U.S. apparel is in the leisure sector, where U.S. styles are well accepted and where designer and branded products are less sensitive to price pressure. To be successful, U.S. exporters must accept continental sizes/shapes and be prepared to ship small quantities. A. Rank: 19 B. Name of Sector: Electric Power Systems C. ITA or PS&D Code: ELS 1993 1994 1995 D. Total Market Size 3,060 2,908 3,163 E. Total Local Production 1,932 1,835 2,018 F. Total Exports 160 150 200 G. Total Imports 1,288 1,223 1,345 H. Total Imports from U.S. 80 79 80 I. Exchange Rate 32 33.5 34 Comments: In Belgium, 60 percent of the total electric power production is of nuclear origin, supplied by three power plants. Coal generating plants account for 25 percent, and natural gas accounts for 12 percent. One private company, Electrabel, produces ninety-four percent of Belgium's electricity. The company currently is expanding its reliance on natural gas with the construction of two 460 MW combined cycle power plants. While reliance on coal is decreasing, the company is still interested in clean coal technology and may decide to build new coal fired plants to replace old ones, in order to maintain the diversity of fuel sources. Electrabel, as well as Tractebel, its parent company is active in the former Block countries, with consulting and engineering assignments as well as with decontaminating, upgrading and retrofitting of old plants, including nuclear power plants. Best sub-sectors include integrated coal gasification, clean coal, denox and desulpherization technologies as well as co-generation projects (especially small ones between 5 and 40 MW). A. Rank: 20 B. Name of Sector: Coal C. ITA or PS&D Code: COL 1993 1994 1995 D. Total Market Size 740 710 720 E. Total Local Production 25 20 30 F. Total Exports 0 0 0 G. Total Imports 715 690 690 H. Total Imports from U.S. 301 290 293 I. Exchange Rate 32 33.5 34 Comments: Belgium ceased all domestic mining in 1992, except for some re-processing of slag heaps, and is now a major importer of coal, with 14.7 million tons imported in 1992. In 1993, the U.S. supplied 4,550,000 tons of coal to the Belgian market, making it its fourth largest customer. Coal consumption dropped in 1993, but with the improved economic outlook for the end of 1994 onwards, it is expected to continue to grow at one to two percent per annum. The main markets for U.S. coal are the energy sector and steel industry. U.S. coal faces heavy competition from Australian, South African and Chinese coal. APPENDIX B2. DATA ON BEST PROSPECTS FOR U.S. AGRICULTURAL EXPORTS TO BELGIUM: (All data on the following charts for 1994 and 1995 are estimated.) 1. A. Name of Sector: Wine 1993 1994 1995 B. Total Market Size 511 510 510 C. Total Local Production 32 20 30 D. Total Exports 25 20 20 E. Total Imports 504 510 510 F. Total Imports from U.S. 1.3 1.4 1.5 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: C. Luxembourg only 1993 and 1994 are estimates BLEU per capita consumption of wine declined. However, the BLEU wine consumer has shifted to higher quality wines. Because home consumption of quality wines is growing and the fact that Belgium has a substantial number of high-quality restaurants, the Belgian wine market is believed to have more potential for U.S. quality wines. The best way for the U.S. wine industry to counter the tough competition in this market is to continue to participate in wine fairs and tastings, to work directly with importers, to advertise in publications to put promotion money into information for restaurateurs, and hotel & restaurant schools, and for wine clubs. 2. A. Name of Sector: Sauces & Preparations, mixed condiments & mixed seasonings 1993 1994 1995 B. Total Market Size 18 19 19 C. Total Local Production D. Total Exports 91 90 90 E. Total Imports 108 109 109 F. Total Imports from U.S. 1.3 1.4 1.5 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: B. Market size is derived from trade data C. production figures are unavailable. 1993 and 1994 are estimates A growing awareness of high quality U.S. processed food products, and, a continued low dollar exchange value are valuable assets to further explore opportunities for "new" products. We have noted that newly established companies have had a particular interest in "niche market" products. A vehicle for procuring contacts of "niche market" products could be the trade lead services provided by FAS/AEC, and, also the Regional Export Organizations. For the whole range of packaged food items, the best two vehicles for promotion in Belgium are the ANUGA and SIAL food fairs. 3. A. Name of Sector: Grain, and Grain Preparations 1993 1994 1995 B. Total Market Size 806 800 800 C. Total Local Production 360 355 355 D. Total Exports 1,583 1,570 1,570 E. Total Imports 2,029 2,015 2,015 F. Total Imports from U.S. 37 37 37 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: C. Grains only 1993 and 1994 are estimates We estimate BLEU imports of grain preparations (bakery and pasta products) at approximately half a million dollars. The opportunity here for U.S. firms is likely to be for innovative products and, even for these, one must expect local competition soon after the imported version is accepted. Therefore, the opportunity may be for a series of innovations with the longer term prospect of licensing. 4. A. Name of Sector: Animal Feeds 1993 1994 1995 B. Total Market Size 1,917 1,900 1,900 C. Total Local Production 1,650 1,650 1,650 D. Total Exports 703 690 690 E. Total Imports 970 940 940 F. Total Imports from U.S. 10 10 10 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: C. Feed (Poultry, Swine, Bovines, Horses and other animals) 1993 and 1994 are estimates. 5. A. Name of Sector: Fruits & Nuts 1993 1994 1995 B. Total Market Size 765 770 770 C. Total Local Production 311 315 315 D. Total Exports 334 335 335 E. Total Imports 789 790 790 F. Total Imports from U.S. 17 17 17 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: C. Mainly from fruits 1993 and 1994 are estimates Compared to other EC countries, i.d. Germany and the Netherlands, Belgium has a minor per capita consumption of nuts in general. However, for the last 5 years the nut consumption has been growing continuously and Belgium still is at the early stage of a growing market. The major part of imported nuts goes to wholesalers/retailers of ethnic groups in Belgium. Nevertheless, distribution of nuts through supermarkets has expanded considerably during the last 5 years. Many nuts are imported in "bulk and natural (in-shell)", "grilled and salted" by EU buyers/ distributors. The quality/price relation, however, also appears to be an important factor. Belgium also has a wide-range of domestic food processing firms (bakery products, confectionery, ice cream etc) using nuts. 6. A. Name of Sector: Citrus Fruits & Juices 1993 1994 1995 B. Total Market Size 141 141 141 C. Total Local Production D. Total Exports 26 25 25 E. Total Imports 167 168 168 F. Total Imports from U.S. 5 5 5 G. Exchange Rate 1$ = 32.15 34.53 N/A COMMENTS: 1993 & 1994 are estimates B. Market size is derived from trade data citrus fruits only C. Production data of juices are unavailable, However, BLEU per capita consumption of juices of citrus fruits has grown to approximately 7.50 liters compared to 5.50 liters in 1986. Of total juices consumed, more than 70 percent is juice of citrus fruits. The best potential for U.S. citrus juices is through integrated and associated distribution channels. While the lion's share of imported citrus fruits and/or concentrate is from Brazil, we expect that high quality juices from "pure" juice will be from U.S. citrus juice. 7. A. Name of Sector: Forest Products 1993 1994 1995 B. Total Market Size 901 875 910 C. Total Local Production 553 555 555 D. Total Exports 1,029 1,080 1,100 E. Total Imports 1,440 1,400 1,450 F. Total Imports from U.S. 127 120 125 G. Exchange Rate 1$ = 32.13 34.53 N/A COMMENTS: C. Forest Products only (estimates) D & E Forest and Wood Products (1993 and 1994 are estimates) Belgium has a major wood processing industry that employs 29,991 workers in 2,218 enterprises. 1,507 of these are furniture manufacturers. Total production value of the industry reached BF 137.4 billion in 1992. The furniture industry accounted for BF 79.7 billion. 1992 total domestic consumption in the overall wood processing industry reached BF 70,966 million. When construction works will recover supposedly at the end of 1994, the Belgian wood processing industry and thus BLEU imports of forest products are also bound to follow. FAS cooperators activities and U.S. trade contacts with Major Belgian importers of forest products should create/increase awareness of U.S. forest products availability for export. Actually, the overall international wood importing trade is searching for alternatives in replacement of tropical hardwoods. Importers say that they are more and more contacted by end-users for advice and in search of replacement hardwoods. Major importers anticipate that this is an excellent opportunity for "new" U.S. hardwoods to find inroads into the Belgian market. The trade also reports that there is a good potential for innovative U.S. building products and systems, such as for the Do-It- Yourself market, decorative fittings, as well as chemical products. Exports of building products for 1992 were dollars 3,995 million. The U.S. industry supplies 100 percent of the total market in softwood plywood (dollars 33 million for the total Belgian market plus dollars 9.2 million reexport). Annual needs for new homes are 50,000 units. Building patterns are different from those in the U.S. Only 10 percent of the new construction is prefabricated, but this number is steadily increasing.