Appendix B U.S. DEPARTMENT OF COMMERCE/FOREIGN COMMERCIAL SERVICE I. BEST PROSPECT SECTORS FOR U.S. EXPORTERS TO COSTA RICA (US$ millions, unless otherwise noted) A. Rank: 1 B. Name of Sector: AUTOMOBILE PARTS AND SERVICE EQUIPMENT C. ITA or PS&D Code: APS 1993 1994 1995 D. Total Market Size 131.1 159.8 177.7 E. Total Local Production 27.6 28.8 30.1 F. Total Exports 5.8 5.5 5.2 G. Total Imports 109.2 136.5 152.8 H. Total Imports from U.S. 44.1 55.1 61.7 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for automobile parts and service equipment for 1994 is 40.4 percent of total Costa Rican imports, and 34.5 percent of the total Costa Rican market demand in this category. The largest vehicle importation ever in Costa Rican history was reported in 1992 with a 242.2 percent increase over 1991. In 1993 only 23 percent of imported vehicles were for new cars. This makes the importation of automobile parts and service equipment a promising sector for years to come. While the percentage of disposable income available to Costa Ricans has increased over the last 3-4 years, extremely high tariffs on new cars prevents many Costa Ricans from purchasing new cars. U.S. auto parts supplier, NAPA, has distributed in this market for the last 10 years. It enjoys a comfortable share of the market and has no major competitors. High quality, durability, favorable prices and shorter delivery times are the main factors for increasing U.S. sales of these products. Japan, Brazil and Korea are strong competitors due to price. A new Constitutional decision annuling the discount tariff on used imports will seriously, negatively effect the import of used American parts and cars. A. Rank: 2 B. Name of Sector: TELECOMMUNICATIONS EQUIPMENT C. ITA or PS&D Code: TEL 1993 1994 1995 D. Total Market Size 65.7 88.7 110.9 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 65.7 88.7 110.9 H. Total Imports from U.S. 14.2 21.3 29.8 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for telecommunications equipment for 1994 is 21.6 percent of total Costa Rican imports, representing the same percentage of the total Costa Rican market demand in this sector. There is no production of telecommunications equipment in Costa Rica. Major third country competitors for U.S. products are France, Japan, and Germany. Telecommunications in Costa Rica is a government monopoly. The Costa Rican Institute of Electricity (ICE), in charge of this industry in the country, recently installed a cellular telephone system network for both urban and rural areas. This new service will increase the demand for cellular telephone sets. ICE is currently calling for bids on central telephone offices. The first bid is for 11 central offices for 35,000 telephone lines. The second tender is for an international central telephone office with a capacity of 100 operators. Pricing, financing, delivery time, and strong promotion of products continue to be prime considerations in purchasing decisions for telecommunications equipment. Most promising subsectors for 1995 for U.S. products are cellular telephone sets with a market size of US$ 8 million and data transmission equipment with a market size of US$ 9.6 million. A. Rank: 3 B. Name of Sector: HOTEL AND RESTAURANT EQUIPMENT C. ITA or PS&D Code: HTL 1993 1994 1995 D. Total Market Size 27.7 31.9 38.1 E. Total Local Production 6.5 7.2 7.8 F. Total Exports 5.9 6.5 7.1 G. Total Imports 27.1 31.2 37.4 H. Total Imports from U.S. 14.6 16.8 20.1 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for hotel and restaurant equipment for 1994 is 53.8 percent of total Costa Rican imports, and 52.7 percent of the total Costa Rican market demand in this category. The growth in this sector is spurred by the tremendous growth in tourism in this country. In 1993 tourism surpassed bananas as the prime industrial motor of this country. Product categories in the domestic production include commercial cook/ranges, non-electric commercial cooking/warming apparatus, dispensing furniture and equipment, and refrigeration equipment. The current growth in tourism in Costa Rica has pushed the Costa Rican Government to develop programs and incentives to increase the numbers of hotel rooms in the country. This is the case of the Gulf of Papagayo Project promoted by the Costa Rican Tourism Institute which consists of developing hotels in the 15 beaches on the northern pacific coast. Major U.S. competitors are Spain, El Salvador, South Korea, Brazil, Japan, Colombia and Guatemala. Pricing, financing, delivery time, availability of spare parts, after-sales service, and strong promotion of products continue to be the prime consideration in purchasing decisions for hotel and restaurant equipment. A. Rank: 4 B. Name of Sector: MEDICAL EQUIPMENT C. ITA or PS&D Code: MED 1993 1994 1995 D. Total Market Size 22.4 23.3 24.5 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 22.4 23.3 24.5 H. Total Imports from U.S. 13.3 13.7 14.3 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for medical equipment for 1994 is 58.1 percent of total Costa Rican imports and of the total Costa Rican market demand in this category. Total market demand and total import statistics are identical since there is no local production or exportation of this equipment. Costa Rica has a socialized health care system called the Caja Costarricense de Seguro Social (CCSS). This system includes: 29 hospitals: 9 general hospitals, 7 regional (1 in each geographic region) and 13 peripheral hospitals (distributed in 3 categories according to their size); 16 of these hospitals are located in the Central Region of the country. Additionally, the CCSS is responsible for 300 clinics. The country has 6,920 beds which belong to the CCSS, plus approximately 200 beds in four private clinics. The public is very sensitive to the government's programs in public health and encourages the replacement of obsolete medical equipment in the principal clinics and hospitals. The public sector, represented mainly by the CCSS buys approximately 70 - 80 percent of the medical equipment. The demand for medical equipment in Costa Rica has remained relatively stable over the past three years. Expected market growth for the next three years (1994-1996) will average approximately 10-15 percent per year. However, numerous press reports claim that a major crisis exists in the CCSS. This, coupled with President Figueres' desire to change the overcrowded conditions in the clinics and hospitals may result in additional purchases. Major U.S. competitors in this sector are Germany and Japan. High quality, reliability, durability, favorable prices, good maintenance service and timely delivery are the main factors for increasing U.S. sales of these products. A. Rank: 5 B. Name of Sector: SECURITY AND SAFETY EQUIPMENT (to include security services) C. ITA or PS&D Code: SEC 1993 1994 1995 D. Total Market Size 18.1 22.8 27.5 E. Total Local Production 1.2 1.3 1.4 F. Total Exports 1.0 1.1 1.2 G. Total Imports 17.9 22.6 27.3 H. Total Imports from U.S. 7.1 8.8 10.5 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for security and safety equipment for 1994 is 38.9 percent of total Costa Rican imports, and 38.6 percent of the total Costa Rican market demand in this category. Local production and exportation is attributed mainly to the local manufacturing of security safes, as well as some sound signaling items such as small chimes and bells. Costa Rica's number one public enemy are robberies in the home, the work place and of cars. It is, for Costa Ricans, the number one menance bar none. Most Costa Ricans use alarms, bars on all windows and doors and some 24 hour patrols and still their homes are being vandalized/robbed in record numbers. Commercial establishments are also experiencing robbiers, and their executives have experienced kidnappings in record numbers. have Costa Rican President-elect Figueres made this one of his key campaign themes. U.S. products and services will have have a growing market in this sector. Major U.S. competitors are Brazil, Germany, Israel, Italy and Taiwan. High quality, reliability, favorable prices, experience in this sector, durability, and timely delivery are the main factors for increasing U.S. sales of these products. A. Rank: 6 B. Name of Sector: POLLUTION CONTROL EQUIPMENT C. ITA or PS&D Code: POL 1993 1994 1995 D. Total Market Size 15.4 20.1 25.4 E. Total Local Production 6.0 7.8 9.4 F. Total Exports 0.6 1.0 2.0 G. Total Imports 9.4 12.3 18.0 H. Total Imports from U.S. 5.0 6.0 9.0 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for pollution control equipment for 1994 is 52.7 percent of total Costa Rican imports, representing a 32.2 percent of the total Costa Rican market demand in this sector. Costa Rica produces filters for air and liquids for the automotive industry and the industrial sector. Major third country competitors for U.S. companies are Japan and Switzerland, mainly in filter for air and liquids. The Government of Costa Rica recently enacted a law prohibiting the disposal of solid and liquid waste of the industrial sector into rivers. This law will be enforced starting January 1, 1995. Companies, mainly agricultural in nature, are compelled to specially treat their liquid wastes effective January 1, 1995. Water treatment systems being implemented by manufacturing companies consist mainly of civil works, such as oxidation lagoons, drainage, and concrete tanks with water pumps to circulate the liquids. Most promising subsectors for 1995 are filters for air and liquid pollution control with an estimated market size of US$ 15 million. Water pumps for sewage waters have an estimated market size of US$ 3 million. A. Rank: 7 B. Name of Sector: PORT AND SHIPBUILDING EQUIPMENT C. ITA or PS&D Code: PRT 1993 1994 1995 D. Total Market Size 4.3 10.3 5.0 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 4.3 10.3 5.0 H. Total Imports from U.S. 2.1 6.0 3.0 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for port and shipbuilding equipment for 1994 is 48.5 percent of total Costa Rican imports, representing the same percentage of the total Costa Rican market demand in this sector. There is no production of port and shipbuilding equipment in Costa Rica. The major third country competitor of this type of equipment for the United States is Japan and Taiwan. The Government of Costa Rica is preparing a bid for the upgrading and enlargement of piers at Port Limon and Port Moin -- major Atlantic coast seaports. A bid calling for the construction of a pier for roll-on/roll-off vessels in Port Limon has already been initiated. The enlargement project contemplates the construction of an additional 55 meters of pier for Moin. While these projects are mainly focused in civil construction works, port authorities are in need of cargo movement equipment, such as forklifts, cranes and portable cranes, and container motor heads. The Pacific main seaport Caldera will require a 2-HP to tow ships and for forklifts. A. Rank: 8 B. Name of Sector: AIRPORT/GROUND SUPPORT EQUIPMENT C. ITA or PS&D Code: APG 1993 1994 1995 D. Total Market Size 2.7 3.2 4.0 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 2.7 3.2 4.0 H. Total Imports from U.S. 1.5 2.5 2.5 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for airport and ground support equipment for 1994 is 54.0 percent of total Costa Rican imports, representing the same percentage of the total Costa Rican market demand in this sector. There is no production of airport and ground support equipment in Costa Rica. The major third country competitor for the United States of this type of equipment is Japan. The Government of Costa Rica is in urgent need to expand the main Costa Rican airport facility. The project consists of the enlargement of the airport terminal for immigration and emigration, the cargo terminal and construction of three aircraft gates. The Liberia airport in Guanacaste province needs construction work in the terminal building and the construction of two additional aircraft gates as well as radar and tower instrumentation. While these enlargement projects consist of civil construction works, the local airport authority will require ground support equipment, such as work trucks, self-propelled for cargo and airport personnel, and aircraft gate tunnels. U.S. DEPARTMENT OF COMMERCE/FOREIGN COMMERCIAL SERVICE SECTOR EXPORT PROSPECTS (SEP) FOR U.S. EXPORTERS TO COSTA RICA (US$ millions, unless otherwise noted) A. Rank: N/A B. Name of Sector: SPORTING GOODS & RECREATIONAL EQUIPMENT C. ITA or PS&D Code: SPT 1993 1994 1995 D. Total Market Size 3.8 4.8 5.7 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 3.8 4.8 5.7 H. Total Imports from U.S. 1.1 1.3 1.5 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for sporting goods and recreational equipment for 1994 is 27.1 percent of total Costa Rican imports and of the total Costa Rican market demand in this category. Total market demand and total import statistics are identical since there is no local production or exportation of this equipment. The only production and exportation existing in this country in this sector is limited to a drawback manufacturing operation of baseballs done by major U.S. baseball products manufacturer. Figures reflecting that export are not shown because this export is not affecting the local market in anyway. Major U.S. competitors in this sector are Taiwan and Korea. Very favorable prices, high quality, reliability, durability, and timely delivery are the main factors for increasing U.S. sales of these products. A. Rank: N/A B. Name of Sector: COMPUTERS AND PERIPHERALS C. ITA or PS&D Code: CPT 1993 1994 1995 D. Total Market Size 38.0 41.5 45.0 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 38.0 41.5 45.0 H. Total Imports from U.S. 30.8 34.3 37.8 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for computers and peripherals for 1994 is 82.7 percent of total Costa Rican imports, and of the total Costa Rican market demand in this category. Total market demand and total import statistics are identical since there is no local production or exportation of this equipment. Costa Rican customs estimates that 16.55 percent of the import figure that is reported is software being imported along with hardware. High quality, very favorable prices, good maintenance service and timely delivery are the main factors to increasing U.S. sales of these products. A. Rank: N/A B. Name of Sector: COMPUTER SOFTWARE C. ITA or PS&D Code: CSF 1993 1994 1995 D. Total Market Size 6.7 8.4 9.9 E. Total Local Production 2.5 2.6 2.6 F. Total Exports 2.3 2.2 2.2 G. Total Imports 6.5 8.0 9.5 H. Total Imports from U.S. 5.0 6.5 8.0 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for computer software for 1994 is 81.3 percent of total Costa Rican imports, and 77.4 percent of the total Costa Rican market demand in this category. Local production for 1994 covers 11.5 percent of the total market demand. High quality, very favorable prices, programs that could be easily addapted to the needs of the Costa Rican firms, timely delivery, as well as a local service to assist in the know how to run the programs are the main factors for increasing U.S. sales of these products. A. Rank: N/A B. Name of Sector: LABORATORY SCIENTIFIC INSTRUMENTS C. ITA or PS&D Code: LAB 1993 1994 1995 D. Total Market Size 14.1 15.6 17.1 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 14.1 15.6 17.1 H. Total Imports from U.S. 8.0 8.9 9.2 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for laboratory scientific instruments for 1994 is 57.1 percent of total Costa Rican imports and of the total Costa Rican market demand in this category. Total market demand and total import statistics are identical since there is no local production or exportation of this equipment. Major U.S. competitors in this sector are Germany, Italy, Brazil and Japan. Very favorable prices, high quality, reliability, durability, and timely delivery are the main factors for increasing U.S. sales of these products. A. Rank: N/A B. Name of Sector: ELECTRICAL POWER SYSTEMS C. ITA or PS&D Code: ELP 1993 1994 1995 D. Total Market Size 55.5 80.0 120.0 E. Total Local Production 3.0 3.0 5.0 F. Total Exports - - - G. Total Imports 52.5 77.0 115.0 H. Total Imports from U.S. 17.0 20.0 60.0 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for electrical power systems for 1994 is 32.6 percent of total Costa Rican imports, representing 30.6 percent of the total Costa Rican market demand in this sector. There is virtually no production of electrical power systems in Costa Rica with the exception of high voltage cable for transmission and distribution lines. Major third country competitors of this type of equipment for U.S. products are Japan with turbines and geothermal steam generators, and Venezuela with steel structures for hydroelectric dams. The Costa Rican Institute of Electricity (ICE) is preparing a bid for the construction of a hydroelectric dam in Angostura, Cartago province, and a wind energy project in the Guanacaste province. These two projects are expected to begin in 1995. ICE is also preparing the second stage of the geothermal project for the drilling of 10 wells. Most promising subsectors for U.S. products in the electrical power generating sector are electric transformers and motors with a market size of US$ 63.6 million. A. Rank: N/A B. Name of Sector: BUILDING PRODUCTS C. ITA or PS&D Code: BLD 1993 1994 1995 D. Total Market Size 385.5 424.0 466.4 E. Total Local Production 340.4 374.4 411.8 F. Total Exports 43.5 47.9 52.7 G. Total Imports 88.6 97.5 107.3 H. Total Imports from U.S. 27.3 30.0 33.0 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for building products for 1994 is 30.8 percent of total Costa Rican imports, representing 7.1 percent of the total Costa Rican market demand in this sector. Costa Rica produces more than 75 percent of all the building products needed for the construction industry in the country, industry products such as cement, concrete blocks, cement flooring products, lumber and plywood, construction steel/iron rods and beams, galvanized corrugated roof plates, nails, clay roofing tiles, electrical products, paint, PVC tubes and accessories. Major third country competitors for United States are Brazil, Spain, and Italy with ceramic tiles for floors and walls; Nicaragua, Mexico and Guatemala with ceramic kitchen sinks and bathtubs; Japan, Italy and China/Taiwan with valves, taps, cocks and piping appliances; and Venezuela, Brazil and Germany with roof plates. The construction sector is experiencing a lot of activity. The current tourism boom is generating the construction of many hotels, restaurants and resorts. In addition, the Government program to provide houses for low-income people in the country is also increasing the demand for more construction works. Most promising subsectors in the construction sector for U.S. products are glasses for windows, plastic kitchen sinks and bathtubs, valves and piping appliances, and water pipes and tubes. A. Rank: N/A B. Name of Sector: AIRCRAFT AND PARTS C. ITA or PS&D Code: AIR 1993 1994 1995 D. Total Market Size 2.7 3.4 4.0 E. Total Local Production - - - F. Total Exports - - - G. Total Imports 2.7 3.4 4.0 H. Total Imports from U.S. 2.6 3.0 3.5 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for aircraft for 1994 is 96.0 percent of total Costa Rican imports, representing same percentage of the total Costa Rican market demand in this sector. There is no production in Costa Rica of aircraft and parts. The United States is almost the only supplier of aircraft and parts for the country. The two Costa Rican airline companies (LACSA AND AERO COSTA RICA) lease their aircraft (AIRBUS AND BOEING) for their international service from U.S. organizations, GATX and ILFC. This situation is similar with companies that operate small aircraft like CESSNA and PIPER for domestic scheduled service, mainly for tourists. The units are leased and maintained the U.S. registry in Costa Rica. Therefore, import statistics for aircraft and parts are insignificant. The current tourism boom is expected to increase the demand for additional small aircraft, mainly used, for air taxi service. Due to recent small aircraft accidents, air taxi service companies will also require additional new units. Small aircraft constitute the most promising subsector for U.S. equipment of this type. A. Rank: N/A B. Name of Sector: APPAREL C. ITA or PS&D Code: APP 1993 1994 1995 D. Total Market Size 61.1 67.2 75.3 E. Total Local Production 101.3 111.4 124.8 F. Total Exports 57.7 63.5 71.1 G. Total Imports 17.6 19.3 21.6 H. Total Imports from U.S. 2.9 3.2 3.6 I. Exchange Rate 142.5 155.0 160.0 Comments: Estimated U.S. market share for apparel for 1994 is 16.4 percent of total Costa Rican imports, representing 4.7 percent of the total Costa Rican market demand in this sector. Costa Rica produces more than 70 percent of the country demand in apparel. Major third country competitors for U.S. apparel are China/Taiwan, El Salvador, Panama, and Guatemala. The Government of Costa Rica has been reducing custom duties for the import of apparel, as part of its open market program. For years, apparel imported from the other Central American countries were exempt from ad-valorem duty by the Central American Common Market (CACM) agreement. This custom duty reduction is expected to favor the increase in the import of apparel from countries out of the region. Most promising subsector for U.S. apparel is women's apparel with an estimated market size for 1995 of US$ 24.8 million. U.S. DEPARTMENT OF AGRICULTURE/FOREIGN AGRICULTURAL SERVICE BEST AGRICULTURAL EXPORT PROSPECTS FOR U.S. EXPORTERS TO COSTA RICA A. Rank: 1 B. Name of Sector: Corn C. ITA or PS&D Code: 440000 1993 1994 1995 D. Total Market Size 300,000 345,000 425,000 E. Total Local Production 51,000 39,000 37,000 F. Total Exports 0 4,000 0 G. Total Imports 207,000 320,000 410,000 H. Total Imports from U.S. 207,000 320,000 400,000 Comments: Data in MT are marketing years (October-September) for 1991/1992, 1992/1993 and 1993/1994. CORN The value of U.S. yellow corn exports to Costa Rica doubled from 1989 to 1993, reaching a record $39.5 million in CY 1993. Export volume of U.S. corn is expected to reach 400,000 MT in 93/94, a new record. The major expansion in production of chicken meat and milk along with smaller grains in output of swine meat and aquaculture have fueled growing corn imports for feed. Meanwhile, corn production has fallen due to low profitability (virtually no yellow corn is now produced). U.S. corn exports are expected to continue to grow given future chicken and milk production increases. Two private sector groups import almost all of the corn with the National Production Council (GOCR) purchasing about 5-percent. The U.S. is very competitive shipping out of the Gulf and holds 100-percent of the market. Canadian feed wheat or European wheat or barley could, however, provide some future competition as it has done in other Central American nations. Mexico supplies small quantities of white corn. A. Rank: 2 B. Name of Sector: Soybeans C. ITA or PS&D Code: 222200 1993 1994 1995 D. Total Market Size 132,742 155,000 180,000 E. Total Local Production 0 0 0 F. Total Exports 0 0 0 G. Total Imports 132,742 155,000 180,000 H. Total Imports from U.S. 132,742 155,000 180,000 Comments: Data are in MT for 1993 and are calendar year from the Costa Rican Bureau of Census. Forecasts are provided for CY94 and CY95. SOYBEANS U.S. exports of soybean totaled a record $35.7 million in 1993, more the doubling from 1989. According to U.S. Census data, U.S. export volume in CY1993 reached a record 141,228 MT (Costa Rican statistics show imports of U.S. soybeans totaled slightly less). The same factors influencing corn imports have contributed to growing U.S. soybean exports (both are imported on the same ship). The U.S. also holds a 100-percent share of the soybean import market (no soybeans are produced locally). Soybeans are imported primarily for the meal; the oil has been in surplus over the last few years, with exports to Central America providing an outlet. Local palm oil provides competition, since cheaper shortening dominates fats and oils use. There is only one oilseed crusher in Costa Rica, INOLASA, located near the Pacific port of Caldera (where all bulk grains arrive). A. Rank: 3 B. Name of Sector: Wheat C. ITA or PS&D Code: 410000 1993 1994 1995 D. Total Market Size 140,000 143,000 148,000 E. Total Local Production 0 0 0 F. Total Exports 0 0 0 G. Total Imports 126,000 151,000 150,000 H. Total Imports from U.S. 126,000 151,000 150,000 Comments: Data in MT are marketing years (July-June) for 91/92, 92/93 and 93/94. WHEAT U.S. wheat exports reached a record of $26.8 million in 1993. U.S. export volume in 93/94 is estimated to exceed 150,000 MT. About 75 percent of Costa Rican wheat imports are hard red spring, with soft red winter and durum about equally comprising the rest. The U.S. holds 100-percent of the market but increased competition from Canada and the EU is expected. Currently the GOCR National Production Council imports all wheat but the private sector may be allowed to import in 1995. Costa Rica receives a small amount of its wheat under PL-480 Title I ($5 million in FY94). No wheat is produced locally. A. Rank: 4 B. Name of Sector: Milled rice C. ITA or PS&D Code: 422110 1993 1994 1995 D. Total Market Size 145,000 147,000 150,000 E. Total Local Production 123,000 125,000 110,000 F. Total Exports 0 0 0 G. Total Imports 37,000 24,000 40,000 H. Total Imports from U.S. 37,000 24,000 25,000 Comments: Market size and local production (MT) are marketing years (August-July) for 1991/1992, 1992/1993 and 1993/1994. Import data (MT) are calendar years 1992, 1993 and estimated 1994. RICE U.S. exports totaled $5.5. million in 1993, about half of 1992's record level of $11.1 million due to lower U.S. rice prices in the first part of the year and lower export volume. U.S. export value will increase in 1994 due to larger Costa Rican imports of milled rice and higher U.S. prices. Costa Rica traditionally has purchased more rough rice (thru the Rice Office) than milled rice (thru CNP). Ecuador has been contracted to supply 15,000 MT of milled rice in 1994. Costa Rica's rice production has declined over the last few years due to the lower planted area and low prices; significant new irrigation area will go into effect for the 95/96 year and will likely reduce import needs. Costa Rica must eliminate its rice import permits in November 1994 and this will allow for more importers to participate in the trade, although at likely higher tariff rates. A. Rank: 5 B. Name of Sector: Fresh fruit C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLION D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 626 650 670 G. Total Imports 8.4 9.5 10.5 H. Total Imports from U.S. 6.5 7.5 8.5 Comments: Includes exports of bananas, pineapples and melons (the three largest categories of fruits exported). Based on GOCR statistics for 1993. FRESH FRUIT Based on U.S. Census data, U.S. exports of fresh fruit in 1993 reached a record $6.6 million (tripling since 1989). According to Costa Rican data, fresh fruit imports totaled $8.4 million in 1993, with the U.S. share at 77 percent. Costa Rican grape imports totaled $3.1 million, with the U.S. share at 86 percent; Costa Rican apple and pear imports totaled $3.0 million, with the U.S. share of 95 percent. Chile provides the strongest competition in grapes (although at a different season), as in apples and pears (but with a lower quality). Reduced tariffs and consumption taxes since 1992, growing per capita income, and promotional activities (advertising, point of sale demonstrations and technical assistance on fruit handling), have increased U.S. sales. A. Rank: 6 B. Name of Sector: Processed Fruit/Vegetables C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLION D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 11.6 13.0 15.0 G. Total Imports 7.3 8.5 9.5 H. Total Imports from U.S. 3.8 4.5 5.0 Comments: Based on GOCR statistics for 1993, which apparently include fewer products for this category than U.S. data. PROCESSED FRUIT AND VEGETABLES Based on U.S. Census data, U.S. exports of processed fruit and vegetables in 1993 reached a record $4.7 million (doubling since 1989). According to Costa Rican data, processed fruit and vegetable imports totaled $7.3 million 1993, with the U.S. share at 52 percent. These products, especially processed fruit, generate strong import demand. Guatemala is also exporting significant quantities of canned fruit to Costa Rica (22-percent market share in 1993). Some local Costa Rican canned products also provide competition. A. Rank: 7 B. Name of Sector: Snacks C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLION D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 15.0 16.5 18.0 G. Total Imports 15.0 16.5 18.0 H. Total Imports from U.S. 3.7 5.0 5.5 Comments: Based on GOCR statistics for 1993 (exports are estimated based on January-May data). SNACKS FOODS Based on U.S. Census data, U.S. exports of snack foods reached a record $3.3. million in 1993. U.S. exports more than tripled over 1993, as lower tariffs resulted in the imports of many new brands of high quality U.S. cookies and candies. U.S. exports of salty snacks also grew, especially potato chips and other snacks (in bags and containers). Costa Rica produces chocolates and other candies and cookies locally which provides some competition for the U.S. in the market. These products are also exported to Central America (with a small amount shipped to the U.S.). A. Rank: 8 B. Name of Sector: Fruit/Vegetable Juices C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLIONS D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 10.8 12.0 13.0 G. Total Imports 6.0 7.5 7.5 H. Total Imports from U.S. 2.3 3.5 4.5 Comments: Based on GOCR statistics, which apparently include fewer products for this category than U.S. data. FRUIT/VEGETABLE JUICES Based on U.S. Census data, U.S. exports of juices reached a record $4.7 million in 1993. This includes U.S. bulk concentrate (primarily orange juice, but also some grapefruit and grape juice) which is mixed locally to mostly produce consumer-sized boxed juices. Also, U.S. exports of retail-size cans and bottles, led by apple juice, are popular. Sales of juices and cold beverages with a smaller percentage of juice are also growing. A. Rank: 9 B. Name of Sector: Planting seeds C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLION D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 4.9 6.0 7.0 G. Total Imports 2.3 3.0 3.5 H. Total Imports from U.S. 1.9 2.5 3.0 Comments: Based on GOCR statistics, which apparently includes fewer seed types for this category. PLANTING SEEDS According to preliminary data from the Central Bank of Costa Rica, $2.3 million dollars worth of planting seeds were imported during 1993, of which 83 percent came from the U.S. (U.S. exports show $2.2 million were exported that year). Cantaloupe seeds are the most important type of seed imported both in terms of volume and value, followed by bean, tomato, onion and other types of vegetable seeds. Seed imports should continue to rise as production and exports of some of these products are expected to increase (mainly bean production and cantaloupe exports). Costa Rica exports petunia seeds to the U.S. and other countries (exports of petunia seeds reached $4.0 million in 1993, up sharply from 1992). A. Rank: 10 B. Name of Sector: Breakfast cereals C. ITA or PS&D Code: 1993 1994 1995 U.S. $ MILLION D. Total Market Size n/a n/a n/a E. Total Local Production n/a n/a n/a F. Total Exports 0.4 0.4 0.5 G. Total Imports 7.9 8.5 9.0 H. Total Imports from U.S. 1.5 2.0 2.5 Comments: Based on GOCR statistics for 1993 (exports are estimated based on January-May data) BREAKFAST CEREALS Based on U.S. Census data, U.S. exports of breakfast cereals reached $1.4 million in 1993 (three times the 1992 level, but below 1986's record of $2.3 million). Lower tariffs in 1993 and the registration of many new brands of U.S. cereals (with all major producers and many varieties) led to 1993's strong showing. We expect U.S. exports will continue to rise but will face continued competition from cheaper Kellogg's cereals produced in Guatemala (the latter dominate the market). A small amount of breakfast cereal is also produced locally.