II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS

INDUSTRY AND MANUFACTURING PRODUCTS:  THE GOG PREDICTS THAT
GUINEA'S SMALL INDUSTRIAL AND MANUFACTURING SECTOR WILL GROW
BY 3.5 PERCENT IN 1994, 5.0 PERCENT IN 1995, AND 6.5 PERCENT
IN 1996.  ALTHOUGH INDUSTRY AND MANUFACTURING ACCOUNT FOR ONLY
4.6 PERCENT OF GUINEA'S GDP, THE SECTORS ARE IMPORT INTENSIVE.
IN 1993, GUINEA IMPORTED 507.3 MILLION USD IN MANUFACTURED
GOODS, OF WHICH 210.3 MILLION (24 PERCENT OF GUINEA'S TOTAL
ANNUAL IMPORT BILL) WAS INTERMEDIATE GOODS, AND 169 MILLION
USD (19.3 PERCENT OF TOTAL IMPORTS) WAS MACHINERY AND
EQUIPMENT.   IMPORTS OF INTERMEDIATE GOODS AND EQUIPMENT ARE
PROJECTED TO INCREASE ACCORDINGLY, WITH EQUIPMENT IMPORTS
INCREASING 8 PERCENT ANNUALLY THROUGH 1996 AND INTERMEDIATE
GOODS IMPORTS INCREASING 3.5 PERCENT PER YEAR DURING THE SAME
PERIOD.

U.S. EXPORTS OF INTERMEDIATE GOODS, MACHINERY, AND EQUIPMENT
SHOULD SEE RISING DEMAND IF THESE FORECASTS OF INCREASING
INFRASTRUCTURE DEVELOPMENT AND LOCAL BUSINESS ACTIVITY
MATERIALIZE.  TO DATE, U.S. HEAVY MINING EQUIPMENT,
AGRICULTURAL MACHINERY, AND UTILITY VEHICLES HAVE PENETRATED
THE MARKET, WITH APPROXIMATE 11.1 MILLION USD IN SALES IN
1993.  IN THE CATEGORY OF INTERMEDIATE GOODS, THE U.S.
EXPORTED 3.9 MILLION OF PAINTS AND VARNISHES, 1.0 MILLION OF
IRON AND METAL PIPING AND HINGES, AND 1.0 MILLION IN PLASTIC
COMPOUNDS AND INDUSTRIAL CHEMICALS.

CONSTRUCTION: DONOR PROJECTS AND A LOCAL CONSTRUCTION BOOM
HAVE FUELED LARGE IMPORTS OF CONSTRUCTION MATERIALS.  THE
CONSTRUCTION AND PUBLIC WORKS SECTOR ACCOUNTED FOR 6.7 PERCENT
OF GDP IN 1993, AND THE GOG EXPECTS IT TO GROW BY 4.5 PERCENT
IN 1994, 5.5 PERCENT IN 1995, AND 5.7 PERCENT IN 1996.
IMPORTS TO SUPPORT THE SECTOR'S DEVELOPMENT ARE CLOSELY LINKED
TO THE NATIONALITY OF LOCALLY-BASED EXPATRIATE COMPANIES.  THE
CEMENT AND CLINKER MARKETS ARE LARGELY FILLED BY EXPORTS FROM
SPAIN AND FRANCE, THROUGH LOCAL COMPANIES AFFILIATED WITH
SUPPLIERS OF THOSE NATIONALITIES.  IN 1993, THE U.S. EXPORTED
1.5 MILLION USD OF BITUMINOUS MATERIALS AND ASPHALT-BASED
MIXTURES.  WITH ONGOING CONSTRUCTION PROJECTS, THERE MAY BE AN
OPPORTUNITY FOR EXPANSION IN THIS AREA.

TECHNOLOGY: HIGH TECHNOLOGY PRODUCTS, INCLUDING COMMUNICATIONS
EQUIPMENT AND SERVICES MAY ALSO SEE A SMALL MARKET NICHE
OPENING OVER THE MEDIUM TERM.  (THERE ARE NO IMPORT STATISTICS
ON THESE PRODUCTS.)  CURRENT TELECOMMUNICATIONS SECTOR REFORM
EFFORTS, UPGRADES, AND FORTHCOMING PRIVATIZATION AND EXPANSION
OF SERVICES WILL INCREASE THE DEMAND FOR THESE PRODUCTS.
THIRD COUNTRY COMPETITION IS FIERCE, HOWEVER, PARTICULARLY
FROM FRANCE AND BELGIUM.  THUS, THE 1993 U.S. EXPORT LEVEL OF
2.7 MILLION IN HIGH TECHNOLOGY EQUIPMENT DOES NOT GUARANTEE A
CONTINUED MARKET SHARE.

AGRICULTURAL AND FOOD PRODUCTS:  GUINEA'S PRIMARY SECTOR GREW
BY 4.1 PERCENT IN 1993, FOLLOWING A RATE OF 3.8 PERCENT IN
1992, AND 3.1 PERCENT IN 1991.  THE STRONGEST OF PRIMARY SUB-
SECTORS BY FAR IS FISHING, WITH AN ANNUAL GROWTH RATE OF 16.8
PERCENT IN 1991, AND 15 PERCENT IN 1992 AND 1993.  DOMESTIC
AGRICULTURAL GROWTH HAS AVERAGED 3.2 PERCENT ANNUALLY SINCE
1990, AND IS PROJECTED TO AVERAGE 3.6 PERCENT BETWEEN 1994 AND
1996.

IN SPITE OF THE GROWTH OF DOMESTIC AGRICULTURE, GUINEA IS
STILL A LARGE IMPORTER OF AGRICULTURAL PRODUCTS, TOBACCO, AND
ALCOHOLIC AND NON-ALCOHOLIC BEVERAGES.  IMPORTED FOOD PRODUCTS
ACCOUNTED FOR 166 MILLION USD IN 1993.  LEADING FOOD PRODUCT
IMPORTS IN 1993 INCLUDE THE FOLLOWING (MEASURED BY VOLUME):
RICE (213,632 METRIC TONS), FLOUR (74,359 METRIC TONS), SUGAR
(50,401 METRIC TONS), FISH (17,575 METRIC TONS), COOKING OILS
(16,965 METRIC TONS), MILK PRODUCTS (11,407 METRIC TONS).
(SOURCE: PORT OF CONAKRY).

GUINEA'S LARGEST SUPPLIERS OF RICE INCLUDE CHINA (68 PERCENT),
THE U.S. (12.5 PERCENT), INDONESIA (6.2 PERCENT), AND THAILAND
(6.1 PERCENT).  FLOUR EXPORTS ORIGINATE LARGELY IN FRANCE
(88.5 PERCENT), WITH BELGIUM (9.5 PERCENT), AND THE
NETHERLANDS (1.8 PERCENT) ALSO CONTRIBUTING.  PRINCIPAL SUGAR
SUPPLIERS INCLUDE BELGIUM (72.1 PERCENT), FRANCE (24.5
PERCENT), AND THE NETHERLANDS (2.5 PERCENT).

U.S. EXPORTERS SHOULD BE ADVISED THAT SOME IMPORTS REQUIRE
SPECIAL AUTHORIZATION FROM THE CENTRAL BANK.  THESE INCLUDE
RICE, WHEAT FLOUR, AND SUGAR.  PERIODICALLY, THE GOG TAKES
MEASURES TO PROTECT DOMESTIC AGRICULTURAL PRODUCTION; IN 1993
AND 1994, FOR EXAMPLE, FOREIGN POTATO IMPORTS WERE CONTROLLED
DURING THE GUINEAN POTATO HARVEST.  IN ADDITION, THE EUROPEAN
COMMUNITY HAS SEVERAL EXPORT SUBSIDY PROGRAMS.  THESE HAVE
NOTABLY ENHANCED THE EC SHARE OF GUINEA'S IMPORTS OF FLOUR AND
DAIRY PRODUCTS.

THE U.S. EXPORTED 27.4 MILLION IN FOOD PRODUCTS IN 1993,
SUPPLYING 16.4 PERCENT OF GUINEAN IMPORTS IN THIS SECTOR.  TOP
U.S. EXPORTS INCLUDE RICE (10.6 MILLION USD), PREPARED SAUCES,
CONDIMENTS AND SEASONINGS (1.4 MILLION USD), FLOUR (363,000
USD), FRESH AND FROZEN MEAT AND POULTRY (214,000 USD), DAIRY
PRODUCTS (MARGARINE, ICE CREAM, CHEESE) (40,000 USD), AND
COOKING OILS (14,000). (U.S.DEPARTMENT OF COMMERCE STATISTICAL
TRADE DATA).

FOR INTERESTED U.S. EXPORTERS, GUINEA IS NOW ELIGIBLE FOR
THREE REGIONAL USDA EXPORT SUBSIDY PROGRAMS: A WHEAT EXPORT
ENHANCEMENT PROGRAM, A DAIRY EXPORT ENHANCEMENT PROGRAM, AND A
GSM-102 CREDIT PROGRAM.  FOR FURTHER INFORMATION, PLEASE
CONTACT THE U.S. DEPARTMENT OF AGRICULTURE, FOREIGN
AGRICULTURAL SERVICE, ROOM 4071-SOUTH BUILDING, WASHINGTON,
D.C.  20250-1000.