Appendix B: DATA ON BEST PROSPECTS I. List of industry best prospects Page 1) Telecommunications Services .......................... 62 2) Medical Equipment .................................... 63 3) Pollution Control Equipment .......................... 64 4) Franchising .......................................... 65 5) Computer Software .................................... 66 6) Films and Videos ..................................... 67 7) Telecommunications Equipment ......................... 68 8) Paper and Paperboard ................................. 69 9) Computer Services .................................... 70 10) Dental Equipment ..................................... 71 11) Sporting Goods & Recreational Equipment .............. 72 12) Marine Fisheries Products ............................ 73 13) Laboratory and Scientific Equipment .................. 74 14) Packaging Equipment .................................. 75 15) Water Resource Equipment ............................. 76 16) Aircraft and Parts ................................... 77 17) Travel and Tourism Services .......................... 78 18) Coal ................................................. 79 19) Computers and Peripherals ............................ 80 20) Building Products .................................... 81 21) Electrical Power Systems ............................. 82 22) Apparel .............................................. 83 23) Business Equipment ................................... 84 24) Toys and Games ....................................... 85 25) Books and Periodicals ................................ 86 26) Engineering Services ................................. 87 A) Rank of sector: 1 B) Name of sector: Telecommunications Services C) Three letter ITA industry sector code: TES D) Total sales (US dols millions): -1993 9,650 -1994 (e) 9,500 -1995 (e) 11,000 E) Total local sales (millions): -1993 9,584 -1994 (e) 9,350 -1995 (e) 10,750 F) Total exports (millions): -1993 84 -1994 (e) 100 -1995 (e) 150 G) Total sales by foreign owned cos.: -1993 150 -1994 (e) 250 -1995 (e) 400 H) Sales by U.S. owned firms: -1993 85 -1994 (e) 150 -1995 (e) 250 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of sales by U.S.-owned firms is 30 percent through 1997. Spain's PTT, Telefonica, still maintains monopoly for basic telephone services. In liberalized services such as paging, Telefonica owns of the three services permitted. The other two are private. An American company has equity share in one of them. Two GSM standard cellular phone operators will be licensed sometime this year. One of them will go to Telefonica. Several American as well as European companies have equity share in the 4 or 5 consortiums that will bid for this license. Cable TV draft law expected sometime in late 1994 will expand telecommunication services. A) Rank of sector: 2 B) Name of sector: Medical Equipment C) Three letter ITA industry sector code: MED D) Total market size (US dols millions): -1993 1,275 -1994 (e) 1,179 -1995 (e) 1,250 E) Total local production (millions): -1993 325 -1994 (e) 239 -1995 (e) 200 F) Total exports (millions): -1993 50 -1994 (e) 60 -1995 (e) 50 G) Total imports: -1993 1,000 -1994 (e) 1,000 -1995 (e) 1,100 H) Imports from the U.S.: -1993 355 -1994 (e) 390 -1995 (e) 450 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated annual growth rate of U.S. imports through 1997 is 20 percent. Due to EU tariffs, French and German medical equipment manufacturers enjoy price advantages over their U.S. competitors. In spite of this competitive advantage U.S. products maintain their leadership in the Spanish medical equipment market. Public health care generates 70 percent of total demand, and is a large purchaser of U.S. medical equipment. The private sector is gaining importance in this market as new private medical insurance coverage boosts demand. Medical equipment suppliers face strict certification requirements -called "homologation" - and the process can take up to a year. Companies entering this market require strong financial leverage, as the public sector defers payments over a long period of time. A) Rank of sector: 3 B) Name of sector: Pollution Control Equipment C) Three letter ITA industry sector code: POL D) Total market size (US dols millions): -1993 1,250 -1994 (e) 1,300 -1995 (e) 1,525 E) Total local production (millions): -1993 850 -1994 (e) 850 -1995 (e) 975 F) Total exports (millions): -1993 100 -1994 (e) 100 -1995 (e) 125 G) Total imports: -1993 500 -1994 (e) 550 -1995 (e) 675 H) Imports from the U.S.: -1993 85 -1994 (e) 95 -1995 (e) 110 I) Exchange rates used for US$1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 20 percent through 1997. Estimates show that Spanish industry must invest US $10 billion in the next decade in order to meet environmental requirements. Most of this investment will go into air and water pollution control equipment. New projects already require "cleaner" equipment, while mounting public pressure forces old industries to invest in pollution control equipment to "clean up" their industrial processes. The growth potential is even higher if, as expected, the EU comes up with tougher environmental regulations. U.S. waste management technology is considered state of the art, and competitive in prices. Local production makes up 70 percent of the market, while foreign competition comes from Germany (eight percent market share) and Japan (four percent market share). A) Rank of sector: 4 B) Name of sector: Franchising C) Three letter ITA industry sector code: FRA D) Total sales (US dols millions): -1993 2,500 -1994 (e) 2,500 -1995 (e) 2,750 E) Total local sales (millions): -1993 1,500 -1994 (e) 1,450 -1995 (e) 1,650 F) Total exports (millions): -1993 100 -1994 (e) 150 -1995 (e) 200 G) Total sales by foreign owned cos.: -1993 1,100 -1994 (e) 1,200 -1995 (e) 1,300 H) Sales by U.S. owned firms: -1993 400 -1994 (e) 400 -1995 (e) 480 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of sales by U.S.-owned firms through 1997 is 20 percent. There are only 213 franchises in operation and just over 22,700 retail outlets - a mere 4 percent of total retail sales. American firms face stiff competition from French and Italian franchisors, who maintain competitive leadership in this market. Franchise retail outlets have grown 200 percent over the same period of time. Many believe that the survival of traditional shops lies through conversion to franchising. Analysts forecast a large market demand for services franchises. There is a franchising directive from the EU that applies to Spain. A) Rank of sector: 5 B) Name of sector: Computer Software C) Three letter ITA industry sector code: CSF D) Total market size (US dols millions): -1993 606 -1994 (e) 610 -1995 (e) 660 E) Total local production (millions): -1993 314 -1994 (e) 315 -1995 (e) 335 F) Total exports (millions): -1993 10 -1994 (e) 10 -1995 (e) 15 G) Total imports: -1993 302 -1994 (e) 305 -1995 (e) 360 H) Imports from the U.S.: -1993 220 -1994 (e) 253 -1995 (e) 290 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent. U.S. products dominate the consumer software market. Competition comes from local and European companies specialized in market niches. In financial or medical software, U.S. companies are successfully competing with domestic and EU developers. Major American players (Microsoft, Lotus, Borland, etc.) are present in the market via local subsidiaries. Translation to Spanish language is a must for mass-market products. Software piracy (over 80 percent rate), although decreasing thanks to new legislation and coordinated action by the Business Software Alliance with domestic association, is still a major problem in Spain. A) Rank of sector: 6 B) Name of sector: Films and Videos C) Three letter ITA industry sector code: FLM D) Total market size (US dols millions): -1993 619 -1994 (e) 620 -1995 (e) 710 E) Total local production (millions): -1993 130 -1994 (e) 130 -1995 (e) 144 F) Total exports (millions): -1993 20 -1994 (e) 20 -1995 (e) 20 G) Total imports: -1993 509 -1994 (e) 510 -1995 (e) 586 H) Imports from the U.S.: -1993 500 -1994 (e) 500 -1995 (e) 575 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 U.S. films and videos dominate the market. Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. Sustained demand for movies and series programming continues as the television market becomes ever more competitive. Movie theaters maintain their market share. In order to acquire a dubbing license in Spain, distributors must demonstrate they have distributed a domestic film. The U.S. controls 80 percent of box office receipts. Competition is very low and comes mainly from domestic movies. Video piracy is decreasing thanks to sustained efforts from the industry (current level about 20 percent). A) Rank of sector: 7 B) Name of sector: Telecommunications Equipment C) Three letter ITA industry sector code: TEL D) Total market size (US dols millions): -1993 2,000 -1994 (e) 1,990 -1995 (e) 2,190 E) Total local production (millions): -1993 1,400 -1994 (e) 1,380 -1995 (e) 1,450 F) Total exports (millions): -1993 275 -1994 (e) 200 -1995 (e) 210 G) Total imports: -1993 860 -1994 (e) 850 -1995 (e) 950 H) Imports from the U.S.: -1993 220 -1994 (e) 220 -1995 (e) 255 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. Spain's PTT, Telefonica, and is the major end-user and retailer for telecommunications equipment in Spain. Capital spending by Telefonica is projected to be flat over the next three years which will seriously affect markets such as basic telephony equipment, cabling supplies, etc. A new private cellular telephone operator license is expected to be awarded at the end of 1994, and will increase demand for cellular phones using GSM standard. Competition comes from domestic and European companies. Market leadership is difficult to assess due to large variants of international suppliers within various telecommunications equipment sectors. Equipment plugged into the network require certification, which is long and cumbersome (takes between three months and a year). A) Rank of Sector: 8 B) Name of Sector: Paper and Paperboard C) Three-letter ITA industry sector code: PAP D) Total market size (US dols millions): -1993 4,200 -1994 (e) 4,100 -1995 (e) 4,500 E) Total local production (millions): -1993 3,200 -1994 (e) 3,150 -1995 (e) 3,550 F) Total exports (millions): -1993 500 -1994 (e) 450 -1995 (e) 500 G) Total imports: -1993 1,500 -1994 (e) 1,400 -1995 (e) 1,450 H) Imports from the U.S.: -1993 50 -1994 (e) 50 -1995 (e) 55 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. Local production is stagnated, and new consumer demand is met by imports. Spanish paper and paperboard manufacturers face environmental opposition when they try to set up new factories. The annual market for recycled paper is forecast to grow several percentage points above overall sector growth. Finland is the major supplier (20 percent of market share), followed by Germany (14 percent), France (13 percent) and Sweden (10 percent). U.S. market share is 4 percent. There are no special requirements for paper imports in Spain. A) Rank of sector: 9 B) Name of sector: Computer Services C) Three letter ITA industry sector code: CSV D) Total sales (US dols millions): -1993 2,250 -1994 (e) 2,100 -1995 (e) 2,320 E) Total local sales (millions): -1993 2,000 -1994 (e) 1,900 -1995 (e) 2,050 F) Total exports (millions): -1993 25 -1994 (e) 25 -1995 (e) 30 G) Total sales by foreign owned cos.: -1993 275 -1994 (e) 225 -1995 (e) 300 H) Sales by U.S. owned firms: -1993 175 -1994 (e) 175 -1995 (e) 200 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of sales by U.S.-owned firms is 15 percent through 1997. End-users, whether they are companies or individual consumers, demand training, hardware maintenance, and other computer services. Large hardware companies are already offering outside on-line computer services to their clients as part of their marketing strategy. Financial and industrial companies are outsourcing services. The overall immaturity of the local computer services market compared to neighboring country markets guarantees strong growth over the medium term. Competition comes primarily from domestic software and consulting companies who provide local sales service and training. A) Rank of Sector: 10 B) Name of Sector: Dental Equipment C) Three-letter ITA industry sector code: DNT D) Total market size (US dols millions): -1993 280 -1994 (e) 260 -1995 (e) 276 E) Total local production (millions): -1993 67 -1994 (e) 60 -1995 (e) 66 F) Total exports (millions): -1993 n.a. -1994 (e) n.a. -1995 (e) n.a. G) Total imports: -1993 213 -1994 (e) 200 -1995 (e) 210 H) Imports from the U.S.: -1993 40 -1994 (e) 46 -1995 (e) 53 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. Income growth during the 1980's have made Spaniards demand better dental care. Laser application is expected to revolutionize this market, and the U.S. leads in this new technology. Best markets within this sector are surgical equipment (total market amounts to 90 million) and Dental prosthesis (10 million). Competition comes from EU suppliers of dental equipment who do not have to pay duties. Some dental equipment require the same certification process as normal medical equipment. This process is slow and cumbersome and can take up to a year. A) Rank of Sector: 11 B) Name of Sector: Sporting Goods & Recreational Eq. C) Three-letter ITA industry sector code: SPT D) Total market size (US dols millions): -1993 560 -1994 (e) 520 -1995 (e) 560 E) Total local production (millions): -1993 483 -1994 (e) 445 -1995 (e) 500 F) Total exports (millions): -1993 50 -1994 (e) 47 -1995 (e) 50 G) Total imports: -1993 128 -1994 (e) 122 -1995 (e) 130 H) Imports from the U.S.: -1993 25 -1994 (e) 30 -1995 (e) 35 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. The sporting goods and recreational sector remains one of the fastest growing segments within the consumer goods sector in Spain. Spaniards continue to show an increasing interest in activities that will allow them to enjoy the outdoors and improve their health and fitness. Imports continue to gain ground within this market, as local production is not ready to meet consumers high expectations of quality and features. U.S. firms have strong price competition with Asian suppliers who control 30 percent of market. Price should be considered a determining factor in any commercial transaction, mostly because Asian imports are offered at very competitive prices. The Government is under pressure from local manufacturers to investigate whether Asians are dumping their products in Spain. A) Rank of sector: 12 B) Name of sector: Marine Fisheries Products C) Three letter ITA industry sector code: MFI D) Total market size (US dols millions): -1993 4,330 -1994 (e) 4,000 -1995 (e) 4,400 E) Total local production (millions): -1993 2,290 -1994 (e) 2,100 -1995 (e) 2,250 F) Total exports (millions): -1993 502 -1994 (e) 475 -1995 (e) 525 G) Total imports: -1993 2,542 -1994 (e) 2,375 -1995 (e) 2,675 H) Imports from the U.S.: -1993 30 -1994 (e) 30 -1995 (e) 35 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 15 percent through 1997. Spain is the third largest market in the world with an estimated annual consumption of 31 kgs. of seafood per person. Local industry has to resort to imports due to declining catches and restrictions imposed by foreign countries on traditional fishing grounds. There are good opportunities for processed seafood in Spain. Domestic catches make up the largest share of total fish consumed in Spain (Spain has the largest fishing fleet in Europe). Imports from South America are increasing dramatically. Sanitary certificates for imported fish are restrictive. A) Rank of sector: 13 B) Name of sector: Laboratory Scientific Equipment C) Three letter ITA industry sector code: LAB D) Total market size (US dols millions): -1993 803 -1994 (e) 750 -1995 (e) 825 E) Total local production (millions): -1993 232 -1994 (e) 215 -1995 (e) 230 F) Total exports (millions): -1993 50 -1994 (e) 45 -1995 (e) 50 G) Total imports: -1993 621 -1994 (e) 580 -1995 (e) 645 H) Imports from the U.S.: -1993 240 -1994 (e) 240 -1995 (e) 270 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 12 percent through 1997. Over the last decade, total R+D expenditure in Spain has doubled. New regulations implemented in the mid-1980's allow Public Universities to form ventures with business for research purposes. The private sector is convinced that, in order to remain competitive in the EU market, they must spend much more on research and development. Both national and regional governments have special projects to support companies in acquiring know-how through research. Stiff competition comes from EU companies, but in general, U.S. equipment is preferred. Due to the widely defined market it is difficult to assess the overall market leadership for Laboratory/Scientific equipment. Other factors such as industrial quality control concerns and environmental monitoring requirements make this a growing and attractive market. A) Rank of Sector: 14 B) Name of Sector: Packaging Equipment C) Three-letter ITA industry sector code: PKG D) Total market size (US dols millions): -1993 561 -1994 (e) 520 -1995 (e) 570 E) Total local production (millions): -1993 380 -1994 (e) 350 -1995 (e) 380 F) Total exports (millions): -1993 20 -1994 (e) 20 -1995 (e) 22 G) Total imports: -1993 201 -1994 (e) 150 -1995 (e) 212 H) Imports from the U.S.: -1993 10 -1994 (e) 10 -1995 (e) 12 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 12 percent through 1997. This sector is becoming more important in marketing policies to adapt to consumer demands. Manufacturers selling in the Single Market must be concerned with different countries' regulations affecting packaging of their product. Heightened environmental concerns are also contributing to use of different packaging materials and increased use of recyclable ones. There are no ecological labeling requirements in this market, although there is a draft directive under study. Major foreign suppliers include: Italy (38 percent of import market), Germany (24 percent) and France (13 percent). Although U.S. industry has only a small percentage of the Spanish market (4.5 percent), it has an important presence as U.S. packaging equipment is well regarded by local importers. There are no quotas or certification procedures applicable to packaging equipment. A) Rank of sector: 15 B) Name of sector: Water Resources Equipment & Svcs. C) Three letter ITA industry sector code: WRE D) Total market size (US dols millions): -1993 430 -1994 (e) 450 -1995 (e) 475 E) Total local production (millions): -1993 275 -1994 (e) 280 -1995 (e) 300 F) Total exports (millions): -1993 35 -1994 (e) 45 -1995 (e) 50 G) Total imports: -1993 120 -1994 (e) 125 -1995 (e) 125 H) Imports from the U.S.: -1993 40 -1994 (e) 40 -1995 (e) 45 I) Exchange rates used US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 12 percent through 1997. Public utilities are major consumers so American companies must be knowledgeable of both regional and national public procurement procedures. U.S. market share is very small compared to its potential. According to EU directive 91/271, all the Spanish cities with population over 10,000 people will have a sewage plant in the year 2,000. Fully completion of this directive would mean a total investment of about US$ 12 billion. Nearly 70 percent of the market is served by national products, followed by German, American, French and British products. A) Rank of Sector: 16 B) Name of Sector: Aircraft and Parts C) Three-letter ITA industry sector code: AIR D) Total market size (US dols millions): -1993 1,500 -1994 (e) 1,370 -1995 (e) 1,500 E) Total local production (millions): -1993 320 -1994 (e) 290 -1995 (e) 320 F) Total exports (millions): -1993 20 -1994 (e) 20 -1995 (e) 23 G) Total imports: -1993 1,200 -1994 (e) 1,100 -1995 (e) 1,205 H) Imports from the U.S.: -1993 900 -1994 (e) 900 -1995 (e) 910 I) Exchange rates used US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of imports from the U.S. is 12 percent through 1997. Recent EU "open skies" policy has brought competition in the Spanish air transport market. Two former charter companies are competing in regular lines with flag carrier Iberia. They will demand airplanes and parts. Underdeveloped regional market is growing rapidly. Several small airlines have come up to link regional cities which were not serviced by larger air carriers. U.S. manufacturers face competition from domestic companies (small aircraft) and from Airbus. There are good opportunities in spare parts as most of the Spanish commercial and defense air fleet is made up of U.S. planes. A) Rank of sector: 17 B) Name of sector: Travel and Tourism Services C) Three letter ITA industry sector code: TRA D) Total sales (US dols millions): -1993 43,000 -1994 (e) 43,000 -1995 (e) 47,000 E) Total local sales (millions): -1993 29,800 -1994 (e) 30,000 -1995 (e) 33,000 F) Total exports (millions): -1993 n.a. -1994 (e) n.a. -1995 (e) n.a. G) Total sales by foreign owned cos.: -1993 13,200 -1994 (e) 13,000 -1995 (e) 14,000 H) Sales by U.S. owned firms: -1993 850 -1994 (e) 850 -1995 (e) 1,000 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of sales by U.S.-owned firms is 10 percent through 1997. The travel and tourism sector in Spain is affected by the poor economic trends. There are good opportunities for hotel management services as well as investment opportunities in domestic firms. While Spain enjoys close to 60 million visitors a year, Spaniards have also started travelling abroad. Regulations establish that tourism companies setting up business in Spain have to make a deposit at the Ministry of Tourism. The amount varies depending on the business. The United States has become a favorite holiday location. A recently devalued peseta may discourage Spanish travel to the United States and other destinations. A) Rank of sector: 18 B) Name of sector: Coal C) Three letter ITA industry sector code: COL D) Total market size (US dols millions): -1993 2,490 -1994 (e) 2,270 -1995 (e) 2,400 E) Total local production (millions): -1993 1,900 -1994 (e) 1,730 -1995 (e) 1,850 F) Total exports (millions): -1993 0 -1994 (e) 0 -1995 (e) 0 G) Total imports: -1993 590 -1994 (e) 540 -1995 (e) 550 H) Imports from the U.S.: -1993 220 -1994 (e) 220 -1995 (e) 240 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. The Spanish Government protects the domestic coal mining sector by restricting imports. Due to EU regulations and the high-cost of Spanish-mined coal, the government contemplates larger coal imports in the future. The National Energy Plan effective since January 1992, calls for the construction of an additional 550 MW coal-fired power generation capacity using only imported coal. The plan also anticipates increased blending of local coal with imported, lower sulphur coal to reduce pollution. Particularly good market prospects exist for sub-bituminous coal exports to power utilities in Northwestern Spain. U.S. coal makes up 35 percent of total imports. Competition is strong from South Africa (50 percent of total imports) and Colombia (10 percent of import share). A) Rank of sector: 19 B) Name of sector: Computers and Peripherals C) Three letter ITA industry sector code: CPT D) Total market size (US dols millions): -1993 4,000 -1994 (e) 3,700 -1995 (e) 4,000 E) Total local production (millions): -1993 160 -1994 (e) 150 -1995 (e) 165 F) Total exports (millions): -1993 10 -1994 (e) 10 -1995 (e) 12 G) Total imports: -1993 3,850 -1994 (e) 3,560 -1995 (e) 3,850 H) Imports from the U.S.: -1993 830 -1994 (e) 900 -1995 (e) 1,000 I) Exchange rates used US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. The computers and peripheral market is becoming mature. Prices and margins keep falling and competition grows. The need for productivity gains in sectors such as insurance and banking generates demand for new systems and enhancements. There are also good opportunities in specific segments like laser printers, plotters, graphic cards, laptops, as well as in LAN hardware. The Spanish "n" must be physically present in all keyboards. U.S. brands dominate the market, and face little competition from EU and Japanese manufacturers. Most of U.S. brands manufacture most of the hardware in South East Asia. A) Rank of Sector: 20 B) Name of Sector: Building Products C) Three-letter ITA industry sector code: BLD D) Total market size (US dols millions): -1993 10,000 -1994 (e) 10,000 -1995 (e) 11,000 E) Total local production (millions): -1993 10,000 -1994 (e) 10,000 -1995 (e) 11,200 F) Total exports (millions): -1993 1,000 -1994 (e) 1,000 -1995 (e) 1,200 G) Total imports: -1993 1,000 -1994 (e) 1,000 -1995 (e) 1,200 H) Imports from the U.S.: -1993 321 -1994 (e) 320 -1995 (e) 350 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 The construction sector is showing signs of recovery during the past year and should begin full reactivation during 1995. New government housing incentives, the need for improvement of the country's road network and waterway systems, demand for better quality and safety will boost construction sector. Domestic construction companies are among the largest in Europe, and have a monopolistic attitude towards the Spanish market, with a 90 percent market share. Products from other EU countries have close to 70 percent of the import market, mainly from Germany and France. U.S. products make up close to 30 percent of market share. A) Rank of Sector: 21 B) Name of Sector: Electrical Power Systems C) Three-Letter ITA industry sector code: ELP D) Total Market Size (US dols millions): -1993 2,808 -1994 (e) 2,560 -1995 (e) 2,700 E) Total local production (millions): -1993 1,608 -1994 (e) 1,475 -1995 (e) 1,600 F) Total exports (millions): -1993 250 -1994 (e) 240 -1995 (e) 250 G) Total imports: -1993 1,450 -1994 (e) 1,325 -1995 (e) 1,350 H) Imports from the U.S.: -1993 600 -1994 (e) 550 -1995 (e) 610 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. Past devaluations have seriously affected the electricity utility sector in Spain, as they have to service foreign debts amounting to $5.8 billion. The National Energy Plan calls for large investments for this decade, although some of them have been postponed until better economic conditions. Good opportunities exist for equipment using gas as primary energy. There are also good opportunities in small co-generation equipment, wind power electricity generation apparatus and solar power outfits. U.S. equipment which makes up 41 percent of total imports, face very strong competition from EU manufacturers such as German (20 percent of import share) and French equipment suppliers (15 percent of import share). A) Rank of Sector: 22 B) Name of Sector: Apparel C) Three-letter ITA industry sector code: APP D) Total market size (US dols millions): -1993 11,000 -1994 (e) 10,000 -1995 (e) 11,000 E) Total local production (millions): -1993 11,650 -1994 (e) 10,600 -1995 (e) 11,760 F) Total exports (millions): -1993 1,500 -1994 (e) 1,500 -1995 (e) 1,750 G) Total imports: -1993 850 -1994 (e) 900 -1995 (e) 990 H) Imports from the U.S.: -1993 25 -1994 (e) 25 -1995 (e) 30 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. The apparel sector has grown significantly in the last decade. There are many new clothing chains operating in this market. Spanish imports are divided into three, clearly differentiated segments: fashion products (imported mainly from Italy and France); medium-priced, good quality apparel (in which American products generally compete); and less expensive articles (sourced from North Africa and the Far East). American companies face stiff competition from domestic, Italian (15 percent import market share), France (12 percent market share), Portugal (9 percent market share and North African companies (20 percent from Morocco and Tunisia). U.S. apparel which has 3 percent of total imports is slowly making its way in casual wear and sports wear. A) Rank of Sector: 23 B) Name of Sector: Business Equipment C) Three-letter ITA industry sector code: BUS D) Total market size (US dols millions): -1993 1,250 -1994 (e) 1,140 -1995 (e) 1,250 E) Total local production (millions): -1993 1,080 -1994 (e) 990 -1995 (e) 1,050 F) Total exports (millions): -1993 150 -1994 (e) 125 -1995 (e) 150 G) Total imports: -1993 320 -1994 (e) 275 -1995 (e) 350 H) Imports from the U.S.: -1993 17 -1994 (e) 17 -1995 (e) 25 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. Spanish firms consider investment in good business equipment essential to remain competitive. They are extremely brand oriented. Even though improving productivity continues to be a high priority, the recession is causing postponement of many investment decisions. American suppliers which have 5.3 percent of import market share face stiff competition from EU manufacturers who dominate the market. Parts supply to local subsidiaries of American manufacturers dominates current U.S. exports. A) Rank of Sector: 24 B) Name of Sector: Toys and Games C) Three-letter ITA industry sector code: TOY D) Total market size (US dols millions): -1993 470 -1994 (e) 430 -1995 (e) 470 E) Total local production (millions): -1993 480 -1994 (e) 440 -1995 (e) 480 F) Total exports (millions): -1993 200 -1994 (e) 190 -1995 (e) 210 G) Total imports: -1993 190 -1994 (e) 180 -1995 (e) 200 H) Imports from the U.S.: -1993 12 -1994 (e) 12 -1995 (e) 18 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. The toy industry is undergoing a severe slump which will influence the overall market's future development. Consumers demand cheaper Far Eastern toy imports, (with 65 percent of total imports), and children's tastes are changing. The opening of 8 Toys "R" Us stores has boosted demand for American products. Retail profit margins are falling. This market is still very seasonal, with peak sales taking place during Christmas and Spring time. A) Rank of Sector: 25 B) Name of Sector: Books and Periodicals C) Three-letter ITA industry sector code: BOK D) Total market size (US dols millions): -1993 3,095 -1994 (e) 2,775 -1995 (e) 2,860 E) Total local production (millions): -1993 3,345 -1994 (e) 3,050 -1995 (e) 3,150 F) Total exports (millions): -1993 425 -1994 (e) 415 -1995 (e) 440 G) Total imports: -1993 175 -1994 (e) 140 -1995 (e) 150 H) Imports from the U.S.: -1993 15 -1994 (e) 12 -1995 (e) 15 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth imports from the U.S. is 10 percent through 1997. Ready acceptance exists for American books and periodicals. English language is acceptable for technical books/magazines but Spanish is desirable for mass-market. Over 60 million annual visitors boost non-Spanish title sales. Spain is the fifth largest producer in the world and the fourth largest exporter of books. It is the largest market in the world for English language teaching publications; a subsector dominated by British firms. The U.S. holds a 10 percent share of import market, and main competitors are the U.K. (30 percent), France (12 percent) and Italy (11 percent). There are no barriers to import books in Spain. A) Rank of sector: 26 B) Name of sector: Architectural/Construction/Engineering Svcs. C) Three letter ITA industry sector code: ACE D) Total sales (US dols millions): -1993 1,000 -1994 (e) 910 -1995 (e) 1,000 E) Total local sales (millions): -1993 700 -1994 (e) 650 -1995 (e) 700 F) Total exports (millions): -1993 200 -1994 (e) 200 -1995 (e) 220 G) Total sales by foreign owned cos.: -1993 500 -1994 (e) 460 -1995 (e) 520 H) Sales by U.S. owned firms: -1993 175 -1994 (e) 175 -1995 (e) 200 I) Exchange rates used for US$ 1 -1993 127.3 -1994 (e) 140.0 -1995 (e) 140.0 Estimated average annual growth rate of sales by U.S.-owned firms is 10 percent through 1997. Recent Infrastructure plan approved by the Government calls for investment amounting to US$147 billion to the year 2010. Major projects will deal with airport overhaul, seaport refurbishment, water works, highway construction, and upgrading environmentally degraded areas. American firms lead in key engineering fields such as airport refurbishment, but face strong competition from EU and domestic engineering companies. Domestic companies maintain leadership with 50 percent of the market. Sales by EU owned engineering companies (mainly German and French) make up the largest share of total sales made by foreign owned companies. U.S. engineering firms have a 35 percent share of total foreign owned firms. II - "Listing of Agricultural sector best export prospect for U.S. Exporters": Tobacco, Unmfg., Total -------------------------------------------------------------------------------- Commodity: Tobacco, Unmfg., Total (1211000) (HECTARES) (METRIC TONS) Beg. Month/Year of Marketing Year: 01 / 92 01 / 93 01 / 94 SPAIN Revised 1992 Prelim 1993 Forecast 1994 Old New Old New Old New Area Planted 21000 19782 19500 18570 0 18570 Beginning Stocks 44075 44075 42942 43380 0 23880 Farm Sales Weight Prod 45612 45612 42300 41600 0 42300 Dry Weight Production 37402 37402 34675 34112 0 34686 U.S. Leaf Imports 13905 14379 14600 9622 0 11000 Other Foreign Imports 52607 50465 51400 35047 0 41500 TOTAL Imports 66512 64844 66000 44669 0 52500 TOTAL SUPPLY 147989 146321 143617 122161 0 111066 Exports 13287 13391 13000 14791 0 13200 Dom. Leaf Consumption 28300 28300 25000 28500 0 28000 U.S. Leaf Dom. Consum. 16000 14000 16000 9300 0 10500 Other Foreign Consump. 47460 47250 46520 45690 0 42400 TOTAL Dom. Consumption 91760 89550 87520 83490 0 80900 TOTAL Disappearance 105047 102941 100520 98281 0 94100 Ending Stocks 42942 43380 43097 23880 0 16966 TOTAL DISTRIBUTION 147989 146321 143617 122161 0 111066 Softwood Lumber -------------------------------------------------------------------------------- Commodity: Softwood Lumber (2482000) 1000 CUBIC METERS Beg. Month/Year of Marketing Year: 01 / 91 01 / 92 01 / 93 SPAIN Revised 1991 Prelim 1992 Forecast 1993 Old New Old New Old New Production 2500 2600 0 1700 0 1500 Imports 925 1029 0 1150 0 1100 TOTAL SUPPLY 3425 3629 0 2850 0 2600 Exports 100 85 0 46 0 100 Domestic Consumption 3325 3544 0 2804 0 2500 TOTAL DISTRIBUTION 3425 3629 0 2850 0 2600 Forest Products Temperate Hardwood Lumber -------------------------------------------------------------------------------- Commodity: Temperate Hardwood Lumber (2483020) 1000 CUBIC METERS Beg. Month/Year of Marketing Year: 01 / 91 01 / 92 01 / 93 SPAIN Revised 1991 Prelim 1992 Forecast 1993 Old New Old New Old New Production 730 730 0 630 0 630 Imports 470 382 0 381 0 300 TOTAL SUPPLY 1200 1112 0 1011 0 930 Exports 5 5 0 10 0 15 Domestic Consumption 1195 1107 0 1001 0 915 TOTAL DISTRIBUTION 1200 1112 0 1011 0 930 Oilseeds and Products Total Oilmeals ------------------------------------------------------------------------- Commodity: Total Oilmeals (0810000) (1000 METRIC TONS) Beg. Month/Year of Marketing Year: 00 / 92 00 / 93 00 / 94 SPAIN Revised 1992 Prelim 1993 Forecast 1994 New New New Crush 3226 2692 3151 Extr. Rate, 999.9999 0 0 0 Beginning Stocks 215 343 308 Production 2222 1792 2149 MY Imports 1936 2095 1787 MY Imp. from U.S. 172 45 40 MY Imp. from the EC 53 30 40 TOTAL SUPPLY 4373 4230 4244 MY Exports 36 40 42 MY Exp. to the EC 32 33 35 Industrial Dom. Consum 0 0 0 Food Use Dom. Consump. 0 0 0 Feed Waste Dom. Consum 3994 3882 3959 TOTAL Dom. Consumption 3994 3882 3959 Ending Stocks 343 308 243 TOTAL DISTRIBUTION 4373 4230 4244 Calendar Year Imports 2063 1990 1872 Calendar Yr Imp. U.S. 185 43 40 Calendar Year Exports 35 40 45 Calndr Yr Exp. to U.S. 0 0 0 Oilseeds and Products Total Oils ---------------------------------------------------------------- Commodity: Total Oils (4240000) (1000 METRIC TONS) Beg. Month/Year of Marketing Year: 00 / 92 00 / 93 00 / 94 SPAIN Revised 1992 Prelim 1993 Forecast 1994 New New New Crush 3226 3692 3151 Extr. Rate, 999.9999 0 0 0 Beginning Stocks 305 332 244 Production 1456 1282 1431 MY Imports 163 60 59 MY Imp. from U.S. 0 0 0 MY Imp. from the EC 34 35 28 TOTAL SUPPLY 1924 1674 1734 MY Exports 446 394 441 MY Exp. to the EC 226 160 160 Industrial Dom. Consum 95 64 69 Food Use Dom. Consump. 1051 971 959 Feed Waste Dom. Consum 0 1 2 TOTAL Dom. Consumption 1146 1036 1030 Ending Stocks 332 244 263 TOTAL DISTRIBUTION 1924 1674 1734 Calendar Year Imports 112 85 68 Calendar Yr Imp. U.S. 0 0 0 Calendar Year Exports 418 375 272 Calndr Yr Exp. to U.S. 13 15 16 Oilseeds and Products Total Oilseeds ----------------------------------------------------------------- Commodity: Total Oilseeds (2230000) (1000 HA) (1000 TREES) (K MT) Beg. Month/Year of Marketing Year: 00 / 92 00 / 93 00 / 94 SPAIN Revised 1992 Prelim 1993 Forecast 1994 New New New Area Planted 1558 2090 1462 Area Harvested 1468 1743 101 Beginning Stocks 16 17 13 Production 1504 1278 1315 MY Imports 2682 2132 2580 MY Imp. from U.S. 1618 1181 1397 MY Imp. from the EC 40 30 30 TOTAL SUPPLY 4202 3427 3908 MY Exports 120 27 40 MY Exp. to the EC 76 27 40 Crush Dom. Consumption 3226 2689 3151 Food Use Dom. Consump. 74 73 74 Feed,Seed,Waste Dm.Cn. 765 625 633 TOTAL Dom. Consumption 4065 3387 3858 Ending Stocks 17 13 10 TOTAL DISTRIBUTION 4202 3427 3908 Calendar Year Imports 2350 2263 2670 Calendar Yr Imp. U.S. 1173 1241 1486 Calendar Year Exports 50 10 5 Calndr Yr Exp. to U.S. 0 0 0 TOTAL GRAINS (Thousand MT) Mrktg Total Ending Item Year Ha. 000 Prod. Imp. Exp. Feed Use Stock All 93/94 2,035 5,001 1,700 820 2,071 6,951 120 Wheat 94/95 2,075 4,500 2,000 880 1,620 6,620 120 TOTAL 93/94 4,304 11,995 2,710 800 11,063 15,745 1,660 Feed 94/95 4,641 9,580 2,760 300 10,958 14,000 500 Rice 93/94 50 316 100 90 0 409 45 94/95 50 316 100 46 0 366 45 TOTAL 93/94 6,389 17,312 4,510 1,710 13,134 23,105 1,825 GRAINS 94/95 6,766 14,396 4,860 1,226 12,578 20,986 665 Tapioca 1993 1,246 0 1,246 1,246 0 Tapioca 1994 1,300 0 1,300 1,300 0 NGFI 1993 300 980 0 1,280 1,280 0 NGFI 1994 300 1,000 0 1,300 1,300 0 Peas 93/1994 7 10 280 0 285 290 0 Peas 94/1995 50 50 290 0 335 340 0 Alfalfa 93/1994 300 1,400 0 140 1,260 1,260 0 Alfalfa 94/1995 230 1,600 0 160 1,420 1,420 0