Appendix B BEST PROSPECT SECTORS FOR U.S. EXPORTERS TO GREECE (US$ Millions) A. Rank: 1 B. Name of Sector: Telecommunications Services C. ITA or PS&D Code: TES 1993 1994 1995 D. Total Market Size 251 302 313 E. Total Local Production 55 61 64 F. Total Exports 0 0 0 G. Total Imports 144 241 249 H. Total Imports from U.S. 52 65.6 67 I. Exchange Rate 229.2 260 280 Comments: Cellular telephony infrastructure projects and the importation of terminal equipment alone is expected to exceed USD 120 million in 1994. Additional purchases will include private sector networks and other value added services which are about to be introduced by the Hellenic Telecommunications Organization (OTE). A. Rank: 2 B. Name of Sector: Telecommunications Equipment C. ITA or PS&D Code: TEL 1993 1994 1995 D. Total Market Size 255 565 609.4 E. Total Local Production 38 139.6 151 F. Total Exports 5 5.3 5.4 G. Total Imports 212 420 453 H. Total Imports from U.S. 13 21.0 22.6 I. Exchange Rate 229.2 255 280 Comments: Due to the recent change of the Government all previously planned major telecommunication projects are under review. Only the EU supported CRASH program and several submarine deployment projects materialized. The large contract for Greece's digitalization is expected to be finalized by the end of this summer. This project will account for $1.1 billion purchases over the next four years. SDH, multiplexers, fiber optics and other telecommunications equipment is also on the procurement list. A. Rank: 3 B. Name of Sector: Computer and Peripherals C. ITA or PS&D Code: CPT 1993 1994 1995 D. Total Market Size 390 427 429 E. Total Local Production 55 59 61 F. Total Exports 1 1.3 1.6 G. Total Imports 334 356 367 H. Total Imports from U.S. 165 176 182 I. Exchange Rate 229.2 255 280 Comments: The private sector market has shown a drastic drop in all purchases of computer hardware. Networking equipment and powerful PCs acting as servers remain an exception. On the contrary the public sector with the continuous assistance of large EU funds will proceed with large purchases of computer equipment and software. EU funds exceeding $600 million have been earmarked for upgrading and modernizing the public sector in Greece. A. Rank: 4 B. Name of Sector: Aircraft & Parts (military not included) C. ITA or PS&D Code: AIR 1993 1994 1995 D. Total Market Size 280.4 286.8 303.0 E. Total Local Production 18.5 18.9 20.0 F. Total Exports 13.2 13.5 14.3 G. Total Imports 275.1 281.4 297.3 H. Total Imports from U.S. 70.2 71.8 75.9 I. Exchange Rate 225.29 255 280 Comments: With the deregulation of civil aviation in 1993, Olympic Airways ceased to be the nation's sole purchaser of civil aircraft. The good prospects for the tourism industry in the 1994 summer could give a boost to the private sector airlines which will then be reflected in the civil aviation industry. A. Rank: 5 B. Name of Sector: Construction Equipment C. ITA or PS&D Code: CON 1993 1994 1995 D. Total Market Size 1,210 1,312 1,400 E. Total Local Production 366 374 384 F. Total Exports 61 72 84 G. Total Imports 905 1,010 1,100 H. Total Imports from U.S. 41 46 55 I. Exchange Rate 229.25 255 280 Comments: In March 1994 the Greek Prime Minister outlined the major infrastructure projects which, largely financed by the EU, will be completed by 1999. The total estimated cost of these projects is $8 billion for the 1994-1999 period. Included are the Rio-Antirion Bridge, the Acheloos river diversion, highways, railways, ports, the Athens and Thessaloniki subways, and the completion of the Natural Gas Project. U.S. machinery and equipment enjoy excellent reputation for their quality, durability and low maintenance cost. Demand is expected to be large for: bulldozers, loaders, excavators, shovels, crawlers, pavers, finishers and spreaders for concrete, wheeled construction tractors as well as parts for all of the above. A. Rank: 6 B. Name of Sector: Medical equipment C. ITA or PS&D Code: MED 1993 1994 1995 D. Total Market Size 282.9 304.7 327.3 E. Total Local Production 10.2 10.5 10.8 F. Total Exports 7.4 7.6 7.8 G. Total Imports 280.1 301.8 324.3 H. Total Imports from U.S. 45.1 49.0 52.6 I. Exchange Rate 229.25 255 280 Comments: The Greek market for medical equipment is dominated by imports. The health care sector is in desperate need of both new hospitals and modernization of most of the existing ones. The government is in the process of developing an ambitious plan to meet these needs. There is an increasingly strong demand for advanced and sophisticated medical equipment for which U.S. manufacturers enjoy an excellent reputation. Most promising opportunities according to the 1993 market size are in surgical appliances and supplies, surgical/medical instruments and electro-medical equipment. A. Rank: 7 B. Name of Sector: Building Products C. ITA or PS&D Code: BLD 1993 1994 1995 D. Total Market Size 3,400 3,685 3,957 E. Total Local Production 2,522 2,740 2,942 F. Total Exports 12 15 15 G. Total Imports 890 960 1,030 H. Total Imports from U.S. 39 43 44 I. Exchange Rate 229.25 255 280 Comments: Although there is extensive local production and a heavy competition from the EU-suppliers, U.S. products enjoy excellent reputation for their quality and durability. The U.S. best export opportunities in this sector are sawn or chipped wood, veneer sheets and sheets for plywood, pipes, tubes and glazed ceramic flags and pavings. Most promising subsectors according to the 1993 market size are: Glazed ceramic flags and pavings and hearth or wall tiles, sawn, or chipped, sliced or peeled wood, plumbing fittings and faucets, glazier's putty, painter's fillings, indoor walls and floors, builder's hardware fittings and articles. A. Rank: 8 B. Name of Sector: Management Consulting Services C. ITA or PS&D Code: MCS 1993 1994 1995 D. Total Sales 150 128 167 E. Total Local Sales 65 58 67 F. Total Foreign Sales by Local Firms 30 30 31 G. Total Sales by Foreign Firms 65 56 71 H. Total Sales by U.S. Firms 50 45 60 I. Exchange Rate 229.25 255 280 Comments: Greece presents promising opportunities for international consulting firms. Although the present government favors privatization to a smaller degree than its predecessor, it recognizes the need for the partial privatization of a number of large government controlled entities. Industry experts see a growing need in Greece for specialized financial, management, accounting and technical consulting services. U.S. firms may be able to secure contracts either directly or through their European subsidiaries. A. Rank: 9 B. Name of Sector: Processed Foods C. ITA or PS&D Code: FOD 1993 1994 1995 D. Total Market Size 1,240 1,326 1,400 E. Total Local Production 1,420 1,519 1,604 F. Total Exports 700 749 791 G. Total Imports 520 556 587 H. Total Imports from U.S. 32 34.2 36.1 I. Exchange Rate 229.25 255 280 Comments: The Greek food industry constitutes the most significant sector of Greek manufacturing. It has followed a fairly steady growth which is expected to continue. Greeks spend about 40 percent of their per capita income on food. The import market for harmonized schedule chapters 16, 17, 18, 19, 20 and 21 was around USD 520 in 1993. The U.S. share of the market, which is still small, can be increased by using stronger marketing efforts. Best promising subsectors: frozen and canned foods. A. Rank: 10 B. Name of Sector: Electrical Power Systems C. ITA or PS&D Code: ELP 1993 1994 1995 D. Total Market Size 405 441 467 E. Total Local Production 125 133 140 F. Total Exports 10 11 12 G. Total Imports 290 319 339 H. Total Imports from U.S. 29 30 32 I. Exchange Rate 229.25 255 280 Comments: The new ten-year development plan of the Public Power Corporation (PPC) calls for the construction of three natural gas, five lignite-powered power stations, the conversion of two units to combined cycle one, as well as for twenty-eight hydro- power units. New submarine electricity transmission cables will also be installed by 1996 connecting Greece with Italy. Over fifty percent of the cost for the above projects is provided by EU funds. U.S.-made advanced technology equipment, instruments and parts enjoy an excellent reputation in Greece, but U.S. firms have to improve their relations with PPC. Most promising subsectors according to the 1993 market size are: automatic circuit breakers, generating sets, switchgear and parts, insulators, transformers and advanced parts. A. Rank: 11 B. Name of Sector: Automotive Parts and Service Equipment C. ITA or PS&D Code: APS 1993 1994 1995 D. Total Market Size 985.7 939.5 966.7 E. Total Local Production 280.2 267 274.7 F. Total Exports 15.0 14.2 14.6 G. Total Imports 720.5 686.7 706.6 H. Total Imports from U.S. 15.8 15.1 15.5 I. Exchange Rate 229.25 255 280 Comments: In 1992-93, in response to government incentives, consumers scrapped about 200,000 old cars and replaced them with cars with catalytic converters. As a result, demand for automotive parts and service equipment decreased slightly in 1993. According to market sources, the market will recover by the end of 1994 as new cars will start aging and will require replacement parts. U.S. cars sold presently in Greece are of jeep-type. Imports of U.S.-made automotive parts should find also a good market for non-OEM automotive parts for Japanese and European vehicles. Most promising sectors: parts and accessories for tractors; and tires. A. Rank: 12 B. Name of Sector: Drugs and Pharmaceuticals C. ITA or PS&D Code: DRG 1993 1994 1995 D. Total Market Size 1,172.2 1,253.2 1,349.3 E. Total Local Production 350.5 358.8 369.0 F. Total Exports 58.8 62.3 65.2 G. Total Imports 880.5 956.7 1,105.5 H. Total Imports from U.S. 31.1* 34.0* 36.8* I. Exchange Rate 229.25 255 280 Comments: Imports of drugs and pharmaceuticals have increased substantially compared to last year's projections. Strict price controls for both local and foreign produced pharmaceuticals have forced many Greek-based foreign manufacturers to reduce their local production in favor of imports from sister companies. Imported products are protected under EU directives and usually obtain better prices. Most promising subsectors according to market size are: pharmaceuticals packed for retail sale and raw materials for pharmaceuticals. *The U.S. share of the import market is much larger than indicated because many pharmaceuticals are imported from U.S. subsidiaries in the EU, which even if they are manufactured in the U.S. are registered as EU imports into Greece. Furthermore, approximately 30 percent of local production is manufactured by U.S. subsidiaries based in Greece. A. Rank: 13 B. Name of Sector: Pollution Control Equipment C. ITA or PS&D Code: POL 1993 1994 1995 D. Total Market Size 137.8 157.4 169.5 E. Total Local Production 55.1 62.9 68 F. Total Exports 0 0 0 G. Total Imports 82.6 94.4 101.8 H. Total Imports from U.S. 13.7 15.7 16.9 I. Exchange Rate 229.2 255 280 Comments: The market for pollution control systems and equipment will have an excellent growth potential over the next several years. The EU has earmarked USD 64 million for waste treatment sewage systems in 1994 and projects are already under construction or will begin shortly. During the last two decades and despite the drastic increase of all environmental pollutants, Greece has not made any expenditures in environmental protection. In response to this, EU has earmarked over USD 350 million to be spent on waste management and environmental protection projects during the next five years. Priority has been given to water treatment projects and landfills that use modern technology. U.S. manufacturers of monitoring equipment, and landfill equipment as well as engineering companies specializing in environmental projects have an excellent potential in the Greek market. A. Rank: 14 B. Name of Sector: Air conditioning and refrigeration C. ITA or PS&D Code: ACR 1993 1994 1995 D. Total Market Size 165 180 190 E. Total Local Production 15 16 17 F. Total Exports 3 5 6 G. Total Imports 153 169 179 H. Total Imports from U.S. 18 19 21 I. Exchange Rate 229.25 255 280 Comments: The main factors affecting the sector's growth are: the increased number of end-users, the need for replacement of old and outdated equipment, high temperatures during the summer, and the EU financing of private and public sector projects affecting the air-conditioning and refrigeration sectors. Demand is constantly growing. Most promising subsectors according to the 1993 market size are: self-contained commercial and industrial air-conditioning units, heat pumps, water chillers, packaged units, refrigeration chambers, and condensing units. A. Rank: 15 B. Name of Sector: Textile products: Made-up C. ITA or PS&D Code: TXP 1993 1994 1995 D. Total Market Size 1,020.5 1,043.5 1,052.4 E. Total Local Production 956.1 971.5 973.2 F. Total Exports 135.7 140.3 143.1 G. Total Imports 200.1 212.3 222.3 H. Total Imports from U.S. 18.1 19.5 21.3 I. Exchange Rate 229.25 255 280 Comments: Although local production of made-up textile products is substantial, the closing down of some major Greek textile and carpet manufacturers may increase the import market for these products. There are many well-known U.S. and European brand names of linen products in the Greek market. U.S. best export opportunities are in household linen which enjoy an excellent reputation for their quality. A. Rank: 16 B. Name of Sector: Household Consumer Goods C. ITA or PS&D Code: HCG 1993 1994 1995 D. Total Market Size 2,000 2,065 2,162 E. Total Local Production 1,500 1,549 1,622 F. Total Exports 300 310 325 G. Total Imports 800 826 865 H. Total Imports from U.S. 20 21 22 I. Exchange Rate 229.25 255 280 Comments: The household consumer goods category is composed of a variety of product sub-categories which include the following: kitchen appliances, other household appliances, cookware and utensils, home furnishings, plastic housewares, lawn and garden equipment, and soaps and cleaners. The above products have different distribution channels and trends in their demand are not related. U.S. manufacturers of the above items will find good sales opportunities in Greece as U.S. products enjoy a very good reputation. Best prospects exist in kitchen appliances, household furnishings and cookware. A. Rank: 17 B. Name of Sector: Apparel C. ITA or PS&D Code: APP 1993 1994 1995 D. Total Market Size 1,540.3 1,667.6 1,777 E. Total Local Production 2,182.1 2,331.9 2,462 F. Total Exports 1,210.2 1,282.4 1,354 G. Total Imports 568.8 618.1 669 H. Total Imports from U.S. 9.1 10.0 10.7 I. Exchange Rate 229.25 255 280 Comments: The apparel industry is the most dynamic and profitable sector of the Greek market. Despite current economic uncertainties, forecasts for the Greek apparel industry are optimistic. According to trade sources it is anticipated that the apparel market will increase by approximately 10-12 percent annually over the next three years. Despite their small exposure, U.S. suppliers of casual wear enjoy an excellent reputation for quality and prompt deliveries provided they market consistently and maintain competitive prices. Most promising subsector is women's and girls' apparel and men's and boys' casual wear. A. Rank: 18 B. Name of Sector: Paper and Paperboard C. ITA or PS&D Code: PAP 1993 1994 1995 D. Total Market Size 950.5 986.9 1,029.9 E. Total Local Production 464.5 480 489.6 F. Total Exports 4.0 4.1 4.2 G. Total Imports 490.0 511 544.5 H. Total Imports from U.S. 14.5 15.5 16.3 I. Exchange Rate 229.25 255 280 Comments: The 1993 local production and imports remained almost at the 1992 level. According to industry sources, a substantial increase of pulp prices is expected in 1995. U.S.A. is a major exporter of chemical woodpulp to Greece. Imports of paper and paperboard cover 45 percent of the total market. Aggressive marketing and competitive pricing by U.S. firms is required in order to gain a larger share of the import market. Best promising subsectors: chemical wood pulp; and paper and paperboard for writing, printing or other graphic purposes. A. Rank: 19 B. Name of Sector: Textile Fabrics C. ITA or PS&D Code: TXF 1993 1994 1995 D. Total Market Size 2,811 2,978 3,150 E. Total Local Production 2,451.2 2,597 2,743 F. Total Exports 88.4 92.8 98.0 G. Total Imports 448.2 474.1 505.1 H. Total Imports from U.S. 12.3 13.8 14.8 I. Exchange Rate 229.2 255 280 Comments: Imports of textile fabrics are mainly supplied by EU countries. suppliers need to pay more attention to this market. Opportunities for sales exist in polyester-cotton blends, denim, corduroy, yarn-dyed shirting, no-iron cotton shirting and sheeting and selected women's top-weight fabrics. A. Rank: 20 B. Name of Sector: Pleasure Boats & Accessories C. ITA or PS&D Code: PLB 1993 1994 1995 D. Total Market Size 66.1 70.7 76.6 E. Total Local Production 25.0 26.7 28.9 F. Total Exports 8.9 9.5 10.3 G. Total Imports 50.0 53.5 58.0 H. Total Imports from U.S. 11.0 12 13.0 I. Exchange Rate 225.29 255 280 Comments: The Greek market for pleasure boats is made-up of motor boats, and sailboats. The U.S. has a good share of the market for small/medium size cruisers. There are also opportunities for inflatable boats where the demand is high due to their advantages in terms of price, transport and storage during off-season. The market for sailboats is mainly commercial, as opposed to consumer, since over 90 percent of the sailboats sold in Greece are for charter use. A. Rank: 21 B. Name of Sector: Frozen Fish C. ITA or PS&D Code: 0303; 0304 1993 1994 1995 D. Total Market Size 665 660 660 E. Total Local Production 700 700 705 F. Total Exports 96 96 96 G. Total Imports 145 146 148 H. Total Imports from U.S. 6 7 9 I. Exchange Rate 228.56 260 285 A. Rank: 22 B. Name of Sector: Cotton (HVI Certified -SJ2 Acala of California origin) C. ITA or PS&D Code: 2631000 1993 1994 1995 D. Total Market Size (Total Cotton Lint) 22.0 22.0 22.0 E. Total Local Production 38.8 40.5 40.4 F. Total Exports 15.2 18.9 18.3 G. Total Imports 1.8 1.7 2.0 H. Total Imports from U.S. 0.648 0.569 0.672 I. Exchange Rate 228.56 260 280 Comments: HVI certified U.S. cotton is purchased by Greek spinners in order to reinforce their blends, due to the fact that U.S. cotton is strong and uniform. Russian high grade cotton is purchased by Greek spinners at prices between $0.58-0.57 (Free Mill). However, there are two disadvantages. First delays of 2-3 months in delivering, and secondly, 2-3 bales of low quality product is present in each lot purchased. A. Rank: 23 B. Name of Sector: Wine C. ITA or PS&D Code: 2204 1993 1994 1995 D. Total Market Size 2.6 mln HL 2.6 mln HL 2.6 mln HL E. Total Local Production 2.7 mln HL 2.1 mln HL 2.1 mln HL F. Total Exports 61 61 61 G. Total Imports 10 10 10 H. Total Imports from U.S. 0.2 0.3 0.5 I. Exchange Rate 228.56 255 285 Comments: Main competitors: France, Germany, Portugal, Spain.