TABLE OF CONTENTS PAGE I. COMMERCIAL OVERVIEW (Executive Summary) Overview of Import Market....................... 1 Brief Synopsis of Commercial Environment........ 2 Host Country Business Attitude Toward the U.S... 3 Major Business Opportunities.................... 4 Nature of Local and Third Country Competition... 5 II. LEADING TRADE PROSPECTS FOR U.S. BUSINESS Best Prospects Products and Services for U.S. Exporters....................................... 6 III. ECONOMIC TRENDS AND OUTLOOK Major Trends and Outlook........................ 8 Principal Growth Sectors........................ 22 Government Role in the Economy.................. 29 Balance of Payments Situation................... 31 Trade and Investment Barriers................... 31 Labor Force..................................... 41 Major Local and Third Country Competitors in Specific Sectors................................ 42 Infrastructure Situation re: Goods/Service Distribution.................................... 42 Major Infrastructure Projects Underway.......... 43 IV. POLITICAL ENVIRONMENT Nature of Bilateral Relationship with the United States................................... 54 Major Political Issues Affecting the Business... 55 Environment Brief Synopsis of Political System, Schedule for Elections, and Orientation of Major Political Parties......................................... 55 V. MARKETING U.S. PRODUCTS AND SERVICES Distribution and Sales Channels................. 56 Use of Agents/Distributors; Finding a Partner... 57 Franchising..................................... 58 Direct Marketing................................ 59 Joint Ventures/Licensing........................ 59 Steps to Establishing an Office................. 61 Selling Factors/Techniques...................... 65 Advertising and Trade Promotion................. 66 Pricing Product................................. 67 Sales Service/Customer Support.................. 68 Selling to the Government....................... 69 Protecting Your Product from Intellectual Property Rights Infringement ................... 70 Need for a Local Attorney....................... 72 VI. TRADE REGULATIONS AND STANDARDS Tariff and Import Taxes......................... 72 Customs Valuation............................... 73 Import Licenses................................. 74 Export Controls................................. 74 Import/Export Documentation..................... 74 Temporary Entry................................. 74 Labeling, Marking Requirements.................. 75 Prohibited Imports.............................. 75 Standards....................................... 76 Free Trade Zones/Warehouses..................... 77 Special Import Provisions....................... 78 Membership in Free Trade Arrangements........... 79 VII. INVESTMENT CLIMATE Openness to Foreign Investment.................. 80 Conversion and Transfer Policies................ 82 Expropriation and Compensation.................. 82 Dispute Settlement.............................. 82 Political Violence.............................. 84 Performance Requirements/Incentives............. 84 Right to Private Ownership and Establishment.... 84 Protection of Property Rights................... 84 Regulatory System: Laws and Procedures......... 86 Bilateral Investment Agreements................. 86 OPIC and Other Investment Insurance Programs.... 86 Labor........................................... 87 Foreign Trade Zones/Free Ports.................. 87 Capital Outflow Policy.......................... 88 List of Major Direct Investments................ 91 VIII. TRADE AND PROJECT FINANCING Brief Description of Banking System............. 99 Foreign Exchange Controls Affecting Trading..... 101 What is General Financing Availability.......... 101 How to Finance Exports/Methods of Payment....... 103 Types of Available Export Financing and Insurance....................................... 104 Project Financing Available..................... 104 List of Banks with Correspondent U.S. Banking Arrangement..................................... 105 IX. BUSINESS TRAVEL Business Customs................................ 105 Travel Advisory and Visas....................... 107 Holidays........................................ 107 Business Infrastructure......................... 108 APPENDICES A. COUNTRY DATA...................................... 109 B. DATA ON BEST PROSPECTS FOR AGRICULTURE AND INDUSTRY SECTOR EXPORTS........................... 117 C. U.S. AND JAPANESE CONTACTS........................ 154 D. MARKET RESEARCH................................... 190 E. TRADE EVENT SCHEDULE.............................. 197