Appendix B DATA ON BEST PROSPECTS FOR AGRICULTURE AND INDUSTRY SECTOR EXPORTS BEST PROSPECT SECTORS FOR U.S. EXPORTERS TO THE NETHERLANDS (US$ millions, unless otherwise noted. Figures for 1994 and 1995 are estimates) Computer Software A. Rank: 1 B. Name of Sector: Computer Software C. ITA Code: CSF 1993 1994 1995 D. Total Market Size 1,700 1,835 1,980 E. Total Local Production 765 805 845 F. Total Exports 50 55 60 G. Total Imports 985 1,085 1,195 H. Total Imports from U.S. 590 650 715 I. Exchange Rate US$1 = Dfl. 1.90 Comments: In 1993, computer software products made up about 20 percent of the total US$ 7.3 billion Information Technology (hardware, software, services and supplies) market or US$ 1.7 billion. At about 60 percent of the total software products market, standard software is the largest and fastest growing segment. Most imports come from the U.S., U.K. and Germany. U.S. suppliers should benefit from the growing trend to use standard packages over the primarily locally produced custom made solutions. Opportunities for increased sales include UNIX-based systems, networking software, PC software, particularly Windows based products, and CASE Tools. Statistics are based on information provided by local market research firms and industry trade sources. Pollution Control Equipment A. Rank: 2 B. Name of Sector: Pollution Control Equipment C. ITA Code: POL 1993 1994 1995 D. Total Market Size 670 730 793 E. Total Local Production 720 770 823 F. Total Exports 275 280 287 G. Total Imports 225 240 257 H. Total Imports from U.S. 40 43 46 I. Exchange rate: $1.00= Dfl. 1.90 Comments: Stringent Dutch environmental regulations will force companies to invest in products and services designed to prevent, control and analyze pollution. In 1992 (latest available figure) the Dutch spent more than $8 billion to clean their environment. this figure includes local and federal taxes, services and pollution control equipment. Domestic firms are the major suppliers of pollution control equipment and consulting services. The Dutch market for pollution control equipment is very sophisticated. The Dutch export their products and foreign environmental control products and know-how to many countries in Europe particularly to Eastern Europe. U.S. manufacturers offering high-tech pollution control equipment will find good market prospects in the Netherlands and throughout Europe because the demand for a cleaner environment by both governments and citizens is growing. Telecommunications Equipment A. Rank: 3 B. Name of Sector: Telecommunications Equipment C. ITA Code: TEL 1993 1994 1995 D. Total Market Size 800 860 920 E. Total Local Production 900 960 1,200 F. Total Exports 600 660 720 G. Total Imports 500 560 620 H. Total Imports from U.S. 100 110 130 I. Exchange Rate US$1 = Dfl. 1.90 Comments: In recent years, telecommunications equipment sales have grown only slightly in this mature market. The sole provider of the current network, Royal PTT Netherlands (KPN), is in the final stages of digitalizing its network and as a result by the sole operator are declining instead of increasing. This situation will reverse itself with the introduction of a second provider both in the cellular market (in 1995) and the fixed land network market (in 1996). These new telecom providers will require time to generate funds and users for their services and will initially make use of existing networks. In Europe, the U.S. has not been successful in breaking into the major telecommunications segment of public switching and transmission equipment because of strong competition from European manufacturers such as Alcatel, Siemens and Ericsson. The Netherlands is an exception. AT&T Network Systems International, headquarted in Hilversum and employing over 3,800 persons is the main trunk switching and transmission supplier to KPN. U.S. suppliers continue to dominate both the data communications and mobile communications markets. Telecommunications Services A. Rank: 4 B. Name of Sector: Telecommunications Services C. ITA Code: TES 1993 1994 1995 D. Total Market Size 6,500 7,100 7,800 E. Revenues of locally-owned establishments 5,800 6,400 7,100 F. Total Exports N/A N/A G. Revenues of foreign-owned establishments 700 800 900 H. Revenues of U.S. establishments 600 680 750 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The Netherlands offers enormous potential for American telecommunications service companies, from major carriers to small niche-services providers. Presently, as much as 85-80 percent of the Dutch and European telecommunications service market remains closed to U.S. and foreign suppliers. Basic voice transmission, which accounts for 75 percent of the total market revenue, is still reserved to the monopoly provider, Royal Netherlands PTT (KPN), although access to this reserved portion of the market is being forced open. The Dutch Ministry of Transport announced in mid-1993 plans to allow for a second fixed land national telecommunications network at the end of 1995 to compete with KPN. This, in addition to a second cellular telecommunications network planned for 1995 will make this market very attractive for U.S. service providers in the this and the next decade. Computer and Peripherals A. Rank: 5 B. Name of Sector: Computers and Peripherals C. ITA Code: CPT 1993 1994 1995 D. Total Market Size 3,200 3,200 3,200 E. Total Local Production 400 400 400 F. Total Exports 2,700 2,700 2,700 G. Total Imports 5,500 5,500 5,500 H. Total Imports from U.S. 2,000 2,000 2,000 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The Netherlands continues to offer an attractive market for U.S. suppliers of computers and peripherals. While the total number of unit shipments increases, the market has stabilized in recent years due to the economic downturn and hardware price erosion. No major changes are forecasted for this year or 1995. The main local producer is Dutch PC manufacturer Tulip Computers. U.S. suppliers continue to play a dominant role and U.S. products are highly accepted and well- liked for their quality and technology. Primary competition is from the Far East, particularly Japan and Taiwan. Growth areas for 1995 and beyond include: PC's and servers, networking devices, mobile computing equipment, CD-ROM drives, and printers. Trade statistics are based on estimates and trend reports by trade sources. Several U.S. firms, including DEC, Apple, Compaq and Hewlett Packard have their European distribution headquarters in The Netherlands; systems are assembled or localized in The Netherlands and products are re- exported mainly to other European Union countries. Defense Equipment A. Rank: 6 B. Name of Sector: Defense Equipment C. ITA Code: DFN 1994 1995 1996 D. Total Market Size 1,405 1,652 1,796* E. Est. Local Production 140 165 180** F. Total Exports N/A N/A N/A G. Total Imports 1,265 1,487 1,616 H. Total Imports from U.S. N/A N/A N/A I. Exchange Rate US$1 = Dfl. 1.90 Comments: U.S. companies with technologically superior products will remain highly competitive in a number of specific areas in the Dutch defense market. Competition from European companies and consortia will intensify as the procurement of European products will continue to offer political advantages. Despite this trend (some Dutch politicians and bureaucrats our now openly exposing "buy European" preferences), there are real opportunities in a number of niche areas. The winning of upcoming "big ticket" contracts (e.g. armed helicopters and "beyond-visible-range" air-to-air missiles) by U.S. companies could dramatically increase U.S. import statistics. Advocacy support for American companies will be provided by the Ambassador and Country Team members up to highest possible level in the Dutch Government when needed. * These figures are Ministry of Defense projections for direct sales to the Dutch Army, Navy and Air Force. ** There is a 100% "offset requirement" imposed by the Dutch Government for all military sales. Pressure for strict adherence to this requirement is increasing. Offset co-production figures are not reflected in this local production estimate. Above statistics are taken directly from a Ministry of Defense official projection report. 1993 figures are not readily available. Travel and Tourism Services A. Rank: 7 B. Name of Sector: Travel and Tourism Services C. ITA Code: TRA 1993 1994 1995 D. Total Market Size (Total Sales) 5,500 6,000 6,500 E. Total Local Production (Sales by local firms) 8,900 9,500 10,000 F. Total Exports (Sales by local firms) 1,900 2,200 2,400 G. Total Imports (Sales by foreign- owned firms) 5,000 5,500 6,000 H. Total Imports from U.S. (Sales by U.S. owned firms) 576 620 680 I. Exchange Rate US$1 = Dfl. 1.90 Comments: A combination of low dollar rates and intensive competition on airline companies' transatlantic fares have maintained the strong growth pattern of travel and tourism to the U.S. from the Netherlands. In 1993, the arrivals from the Netherlands increased by 10.7% (378,904) compared with 1992, and it is expected to increase in 1994 ( to 419,000), and also in 1995 (460,000). The U.S. is the number one long haul destination for the Dutch with 32% of the long haul market, leaving Asia, the Far East, Latin America and others far behind. Building Products A. Rank: 8 B. Name of Sector: Building Products C. ITA Code: BLD 1993 1994 1995 D. Total Market Size 9,000 9,450 9,922 E. Total Local Production 6,750 7,087 7,441 F. Total Exports 2,250 2,362 2,480 G. Total Imports 4,500 4,725 4,961 H. Total Imports from U.S. 720 756 793 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The construction industry in the Netherlands occupies an important position in the economy. It is a magnet for investments in all types of building materials. Building is becoming more sophisticated, attracting new materials and technologies. Research indicates an assumed overall 2 percent or more a year increase for the civil building engineering industry. Residential construction will focus largely on maintenance and renovation. Non-residential building is likely to achieve an annual growth rate of over 5 percent. The fastest growing market segment is the do-it-yourself market, which accounts for almost one-third of the total market. Electronic Components A. Rank: 9 B. Name of Sector: Electronic Components C. ITA Code: ELC 1993 1994 1995 D. Total Market Size 900 990 1,090 E. Total Local Production 500 525 550 F. Total Exports 400 415 430 G. Total Imports 800 880 970 H. Total Imports from U.S. 125 135 150 I. Exchange Rate US$1 = Dfl. 1.90 Comments: As a trading nation, The Netherlands imports and re-exports large quantities of electronic components, primarily to other European Union member states. Increase for the total market is estimated at 8-10 percent annually. With end-user products becoming more sophisticated, the market for electronic components continues to grow. Growing demands for electronic components in 1993 were experienced from the following end-user sectors: data and telecommunications (+11.6 percent), industrial (+ 9.5 percent), automotive (+8 percent), consumer (+ 6.5 percent), and EDP (+ 6 percent). Official production and trade statistics for the Dutch electronics sector are incomplete to protect local interests and the above figures are based on data supplied by trade sources. Electronics giant Philips is headquartered in The Netherlands with important R&D facilities; most of the production of components takes place outside The Netherlands. Additional European key players include Siemens and SGS Thomson. Many U.S. and Japanese companies have located semi-conductor plants in Europe from which they supply the market. Demand for integrated circuits, e.g. microprocessors and Digital Signal Processors and Application Specific IC's is increasing, while demand for more traditional components is gradually decreasing. Process Controls - Industrial A. Rank: 10 B. Name of Sector: Process Controls - Industrial C. ITA Code: PCI 1993 1994 1995 D. Total Market Size 1,300 1,325 1,360 E. Total Local Production 450 460 475 F. Total Exports 100 105 110 G. Total Imports 950 970 995 H. Total Imports from U.S. 110 115 120 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The total market decreased in 1993; a modest growth of 2-3 percent annually is forecasted for the next few years. Main players are subsidiaries of a few large multinational U.S. companies and European firms, including ABB, Siemens, SGS Thomson. Local production is limited primarily to the assembly of systems from imported parts. Local (petro-)chemical industries are currently not investing in major projects, on the other hand U.S. companies may benefit from expansion opportunities created by increased and/or new demands from the food, energy, utilities and environmental sectors. Trade statistics are based on information from local trade associations and market research firms. Household Consumer Goods A. Rank: 11 B. Name of Sector: Household Consumer Goods C. ITA Code: HCG 1993 1994 1995 D. Total Market Size $4,800 $4,780 $4,850 E. Total Local Production $ 800 $ 780 $ 750 F. Total Exports $ 500 $ 500 $ 500 G. Total Imports $4,500 $4,500 $4,600 H. Total Imports from U.S. $ 260 $ 275 $ 300 I. Exchange Rate $1 = Dfl. 1.90 Comments: Demand for high-quality products is increasing. This trend is a positive one for American manufacturers, whose products compete well with higher-end, European products. Most promising subsector: Tableware Market size (1995 est.): $115 million Materials Handling Machinery A. Rank: 12 B. Name of Sector: Materials Handling Machinery C. ITA Code: MHM 1993 1994 1995 D. Total Market Size 707 755 807 E. Total Local Production 270 288 308 F. Total Exports 148 158 169 G. Total Imports 585 625 668 H. Total Imports from U.S. 98 105 112 I. Exchange Rate US$1 = Dfl. 1.90 Comments: Investments in the Dutch material handling market continue to grow. The industry's trade association predicts that large firms will spend over $400 million on logistics' automation and nearly 40 percent of Dutch firms with less than 50 employees will install automation systems in the next few years. The two main product categories, mobile transportation systems and information systems and services have a market size of $325 million. Investments in lift trucks are estimated to have exceeded $200 million in 1993. The U.S. has approximately 14 percent of the Dutch market in this sector. The Netherlands is one of the few countries where the market for mobile indoor transportation equipment is growing. In addition, the interest in commercial warehousing continues to grow as illustrated by the fact that over 300 American companies have their European distribution centers in the Netherlands. Medical Equipment A. Rank: 13 B. Name of Sector: Medical Equipment C. ITA Code: MED 1993 1994 1995 D. Total Market Size 2,200 2,400 2,650 E. Total Local Production 1,500 1,650 1,800 F. Total Exports 1,000 1,100 1,250 G. Total Imports 1,200 1,300 1,450 H. Total Imports from U.S. 500 550 600 I. Exchange Rate $ 1.00 = Dfl 1.9 Dutch Guilders Comments: Healthcare currently represents 9.6 percent of the Netherlands' Gross National Product. In 1991, this meant that per capita spending on healthcare was $1,900. In 1990, 11.2 percent of the working population was employed in the healthcare sector. Roughly 50 percent of all research, including drug research, is conducted in the healthcare sector. The Foundation of Medical Technology Companies (SOMT) estimates the entire medical equipment and supplies market in the Netherlands amounted to $2.2 billion in 1990. Of this total, the electromedical equipment market represented approximately $600 million, or 30 percent, the rehabilitation and home health care products market $340 million, medical disposables almost $700 million. Growth in the medical equipment and supplies market is modest because of the affects the government's continued attempts to reduce health care expenditures is having on hospital budgets. In the Netherlands 65 percent of trade in the medical technology sector is conducted by importers and distributors, 20 percent by manufacturers, and the remainder by a combination of both. Security and Safety Equipment A. Rank: 14 B. Name of Sector: Security and Safety Equipment C. ITA Code: SEC 1993 1994 1995 D. Total Market Size 337 370 408 E. Total Local Production 34 36 39 F. Total Exports 30 31 32 G. Total Imports 333 365 401 H. Total Imports from U.S. 34 37 40 I. Exchange Rate: $1.00 = Dfl. 1.90 Comments: In 1993, Total expenditures on security equipment and services amounted to approximately $1 billion. Of this amount about $750 million went into surveillance, guard and miscellaneous security services and special constructions in buildings. An additional $337 million was spent on security equipment and systems. In the Netherlands, drug abuse, organized crime and the general tendency to accept a breakdown of public order have contributed to increased crime especially burglaries, robberies and shoplifting. As crime in the Netherlands becomes more "professional" high demands will be put on much of the security equipment in use which will need to be highly reliable and protected against eavesdropping and sabotage. Moreover, the police will need highly advanced electronic equipment to stay ahead of organized crime. U.S. suppliers of security equipment enjoy a good reputation in the Netherlands. Especially, suppliers of the latest high-tech security equipment will be able to a get a share of this growing market. Apparel A. Rank: 15 B. Name of Sector: Apparel C. ITA Code: APP 1993 1994 1995 D. Total Market Size $3,150 $3,320 $3,320 E. Total Local Production $ 740 $ 720 $ 720 F. Total Exports $1,961 $1,900 $1,900 G. Total Imports $4,371 $4,500 $4,500 H. Total Imports from U.S. $ 17 $ 18 $ 19 I. Exchange Rate $1 = Dfl. 1.90 Comments: U.S. apparel exporters are likely to face increased competition with imports from East Asia in the Dutch market. On the positive side, there is some evidence that production costs may no longer be the main determinant of competitiveness in this market. Services, including management costs, storage, quality control and marketing, are increasingly seen as key factors in supply strategies in this sector. American-made apparel remains in demand. Dutch consumers follow American fashion trends closely, especially trends in branded apparel. A new branded product that is selling well in the U.S., will be in demand in the Netherlands within six months. Most promising subsector: Sports and Leisure Wear Market size (1995 est.): $1,950 million Automotive Parts & Service Equipment A. Rank: 16 B. Name of Sector: Automotive Parts & Service Equipment C. ITA Code: APS 1993 1994 1995 D. Total Market Size 3,000 3,090 3,180 E. Total Local Production 1,800 1,850 1,900 F. Total Exports 1,400 1,440 1,480 G. Total Imports 2,600 2,680 2,760 H. Total Imports from U.S. 320 332 345 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The Netherlands has 5.5 million registered automobiles and a population of 15 million, which is the equivalent of 2.7 automobiles per inhabitant. The number of registered commercial vehicles is 605,000, which breaks down into delivery vans (73 percent), trucks (15 percent), tractors (6 percent), specialty vehicles (4 percent), and buses (2 percent). With Rotterdam the world's largest and busiest seaport, the Netherlands is, arguably, the most important European distribution center. Twenty-five percent of all commercial road transportation vehicles in continental Europe belong to the Dutch. Laboratory Scientific Instruments A. Rank: 17 B. Name of Sector: Laboratory Scientific Instruments C. ITA Code: LAB 1993 1994 1995 D. Total Market Size 725 725 730 E. Total Local Production 136 136 140 F. Total Exports 116 116 120 G. Total Imports 705 705 710 H. Total Imports from U.S. 150 150 154 I. Exchange Rate US$1 = Dfl. 1.90 Comments: The laboratory market is in a state of fluctuation. After a poor year in 1991, when sales only rose by 1.8 percent over 1990, Dutch sales of laboratory equipment and supplies in 1992 increased by 6.6 percent over 1991. At the end of 1993, sales only grew by 0.5 percent compared to 1992 and in the first quarter of 1994 dropped by 6.3 percent compared to the same period in 1992. Domestic production and imports account for just under 90 percent of the total sales of laboratory equipment and supplies. Over 80 percent of domestic demand is met by imports and the U.S. has over 20 percent of this import market after Germany with 26 percent. The industry is characterized by a large number (over 240) of small to medium size suppliers with low profit margins. The industry's slow to almost negative growth is related to the slump in the chemical industry, which is the main customer for laboratory instrument makers and suppliers. Sporting Goods and Recreational Equipment A. Rank: 18 B. Name of Sector: Sporting Goods and Recreational Equipment C. ITA Code: SPT 1993 1994 1995 D. Total Market Size $ 231 $ 260 $ 270 E. Total Local Production $ 20 $ 20 $ 20 F. Total Exports $ 366 $ 360 $ 360 G. Total Imports $ 577 $ 600 $ 610 H. Total Imports from U.S. $ 46 $ 46 $ 49 I. Exchange Rate $1 = Dfl. 1.90 Comments: Increases in leisure time and disposable incomes in the Netherlands are expected to increase demand. Demand is further stimulated by the evolution of sport from competitive team sports, to recreational activities for the individual. Finally, demand is likely to be stimulated by technical developments and fashion trends. Successful firms will be those focusing on research and development, in market monitoring, and on pursuing a niche strategy. Brand images will play an ever-increasing role. U.S. manufacturers will face increasing competition from other exporters. The U.S. enjoys a good reputation for innovation and quality in this sector. Most promising subsector: Golf Equipment Market size (1995 est.): $10 million Hotel and Restaurant Equipment A. Rank: 19 B. Name of Sector: Hotel and Restaurant Equipment C. ITA Code: HTL U.S. $ Millions 1993 1994 1995 D. Total Market Size 200 206 212 E. Total Local Production 79 71 67 F. Total Exports 479 469 464 G. Total Imports 600 618 637 H. Total Imports from U.S. 15 16 17 I. Exchange Rate $ 1.00 = Dfl. 1.9 Comments: The food service equipment industry in the Netherlands is a highly developed and competitive market. U.S. manufacturers need to produce new and innovative hotel and catering equipment to penetrate the market. In the Netherlands there are indications that eating meals away from home and take-away meals are on the increase. Therefore, the hotel, restaurant and cafe sectors, especially with respect to fast food, offer U.S. manufacturers of appropriate catering equipment good possibilities for export. The U.S. only holds a 3-5 percent market share of the total imports of catering equipment coming into the Netherlands totalling an estimated U.S. $ 15 million. Germany supplies on average more than 40 percent of these imports, while Italy supplies about 20 percent. Composite Materials A. Rank: 20 B. Name of Sector: Composite Materials C. ITA Code: CPS 1993 1994 1995 D. Total Market Size 205 218 232 E. Total Local Production 35 37 40 F. Total Exports 25 27 30 G. Total Imports 195 208 222 H. Total Imports from U.S. 20 21 22 I. Exchange Rate US$1 = Dfl. 1.90 Comments: Research into the composite materials sector has confirmed that there are numerous opportunities waiting for development. As evidence of the emerging interest, a trade show devoted exclusively to engineered materials was launched in the Netherlands last year. In addition, the first Dutch Technical Materials Handbook is also currently being compiled. Commercial success in this sector will ultimately involve educating industry of the application potential of new technologies in advanced composites. Electrical Power Systems A. Rank: 21 B. Name of Sector: Electrical Power Systems C. ITA: ELP 1993 1994 1995 D. Total Market Size 700 690 685 E. Total Local Production 675 667 662 F. Total Exports 50 51 50 G. Total Imports 75 74 73 H. Total Imports from U.S. 6 5 5 I. Exchange Rate: $1.00= Glds. 2.00 Comments: The fast increasing number of cogeneration power plants in Dutch industry and public utility sector will probably create an overcapacity in the electricity production. In the last couple of years, many large industrial companies have chosen for this efficient and fairly clean electricity production technology. In this way, they have become less dependent of the electricity supply from the public grid. At present, more than 25 percent of the total electricity demand is now furnished by cogeneration plants. As a result of this development, the public utilities have put a moratorium on the construction of new electricity plants. The electricity supply through the public grid (74 million kilowatt/hour) increased less than a half percent in 1993. This yearly decrease in growth is caused by a lower demand by energy intensive industries (economic recession), cogeneration plants and the effects of energy saving. Natural gas continues to be the main energy source, whereas the share of oil remains below one percent. Coal gasification power generation will cover up to one third of the generating capacity. Nuclear energy is expected to continue to play a minimal role. Domestic firms are the major suppliers of electricity generating equipment in the Netherlands. One major domestic supplier, however, is a subsidiary of a large Swiss/Swedish conglomerate. The Dutch public power sector has been largely closed to U.S. suppliers, but the market opening provisions of the European Union public utilities directive, U.S.-EU utility directive negotiations, and some Dutch moves to improve their competition policy in the face of increasing foreign pressure may open this difficult market somewhat in the coming years. Cosmetics and Toiletries A. Rank: 22 B. Name of Sector: Cosmetics and Toiletries C. ITA Code: COS 1993 1994 1995 D. Total Market Size $ 662 $ 672 $ 702 E. Total Local Production $ 220 $ 210 $ 210 F. Total Exports $ 58 $ 58 $ 58 G. Total Imports $ 500 $ 520 $ 550 H. Total Imports from U.S. $ 44 $ 45 $ 47 I. Exchange Rate $1 = Dfl. 1.90 Comments: Aside from the five major multinational producers, many smaller companies are emerging successfully to supply niche markets. Several recent trends indicate that the market for cosmetics, at least in the medium-term, will grow at a rate faster than that for consumer goods in general. The trends include: a growing number of consumers in the 35-and-over age group, increased expenditures on cosmetics by younger people and men, and a developing ethnic cosmetics market. Growth in beauty and skin care products is set to continue, as well as for men's toiletries. Sales of cosmetics and toiletries in the Netherlands in 1993 were 8 percent up on 1992. Most promising subsector: Cosmetics Market size (1995 est.): $300 million AGRICULTURE: BEST PROSPECTS 1994 Fresh Grapefruit U.S. exports of fresh grapefruit can be expected to continue to rise, given an increase in exportable U.S. supplies. In 1992 and 1993, exportable supplies of U.S. grapefruits were sharply reduced by a hard freeze that destroyed much of the crop. Dutch consumers have always been willing to pay the higher prices for quality U.S. pink grapefruit. Fresh Grapefruit (In Metric Tons) A. Rank: 1 B. Name of Sector: Fresh Grapefruit C. 1992 1993 1994 D. Total Market Size 32,426 23,090 33,000 E. Local Production 00 00 00 F. Total Exports 44,356 22,356 32,000 H. Total Imports 76,782 45,446 65,000 I. Imports from U.S. 24,095 25,289 30,000 Tobacco Exports of U.S. Tobacco and Tobacco Products reached a record 149 million in 1992, but fell to 115 million in 1993, due to falling prices and increased competition from Zimbabwe and Brazil. For 1994 and 1995 we expect U.S. exports to rebound slightly, due primarily to the increased production capacity of the Phillip Morris plant in Bergen op Zoom. Exporters of quality U.S. flue cured and burley tobaccos can will likely have the best opportunities. Tobacco (In Metric Tons) A. Rank: 2 B. Name of Sector: Tobacco C. 1992 1993 1994 D. Total Market Size 79,945 71,785 79,500 E. Local Production 00 00 00 F. Total Exports 12,600 12,078 6,500 G. Total Imports 92,545 83,864 86,000 H. Imports from U.S. 18,301 17,100 17,500 I. Exchange Rate US$1 = Dfl. 1.90 Wine U.S. exports of wine have expanded rapidly in the past few years, more than tripling since 1989. The expansion can be expected to continue as U.S. wine exporters have been able to establish extensive distribution, in both restaurants and retail outlets. Also, unlike other EU member states, wine consumption in the Netherlands continues to grow. Although U.S. wines currently have a minuscule market share, exports can be expected to capture a healthy "niche" market. There is a need for quality wines that can be retailed around $7-9 a bottle. Wine (In Million U.S. Dollars) A. Rank: 3 B. Name of Sector: Wine C. 1992 1993 1994 D. Total Market Size 552 560 570 E. Local Production 00 00 00 F. Total Exports 12 11 10 G. Total Imports 552 549 560 H. Imports from U.S. 5.4 6.1 7.0 I. Exchange Rate US$1 = Dfl. 1.90