Minnesota District Export Council
| Our Mission: The District Export Councils contribute leadership and international trade expertise to complement the U.S. Commercial Service’s export promotion efforts through counseling businesses on the exporting process and conducting trade education and community outreach. |
ANESA Conference
Sponsors
About the Markets
| About the Markets |
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| Thursday, February 04 2010 10:41 | |||||||||||||||||||||
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Click on a country below to read more about the market that will be covered at the conference:
Algeria’s market of 35 million inhabitants, energy wealth, and growing demands for modern infrastructure have generated interest from governments and companies around the world. On one hand, Algeria’s economy is expected to grow at a healthy rate of 3-5% over the next several years based on higher world prices for oil. High level Algerian government officials and businessmen have outwardly expressed their desire for greater U.S. business collaboration and involvement in water resources, environmental technologies, safety & security equipment, agriculture, petrochemicals, public works projects and medical equipment. Air Algerie remains an almost all-Boeing fleet for now, and U.S. firms dominate the hydrocarbon sector. As Algeria is a non-traditional market for many U.S. exporters, CS Algeria can open doors in several new sectors such as health & nutrition, franchising, and home & housewares. The placement of an American Commercial Counselor at the U.S. Embassy has created an added stir in the business community towards American commerce.
With a population of 78 million, Egypt is by far the largest Arab country. It sits in the heart of the Middle East with a growing economy that has become much more diversified than in the past. It is a major oil and gas producer, with natural gas production increasing rapidly. Investment needs in power infrastructure remain substantial. The government is putting in place an institutional framework for private public partnerships (PPPs). PPP projects in the pipeline include building and maintaining public schools, hospitals, potable and wastewater stations, and freeways. Unmet demand for housing construction is currently estimated to be 200,000 units annually. In 2008, the U.S. Overseas Private Investment Corporation (OPIC) signed an agreement with the Government of Egypt to provide $250 million in financing to local banks to provide mortgages for affordable housing. Other significant sectors of interest to U.S. companies include steel, cement, chemicals, pharmaceuticals, and light consumer goods. Agriculture, although shrinking as a percentage of GDP, still employs almost 30% of the population. Egypt imports most of its meat, and all of its wood and grains.
Well endowed with natural resources, Ghana has roughly twice the per capita output of the poorest countries in West Africa. Even so, Ghana remains heavily dependent on international financial and technical assistance. Gold and cocoa production and individual remittances are major sources of foreign exchange. The domestic economy continues to revolve around agriculture, which accounts for about 43 percent of GDP and employs about 55 percent of the work force, mainly small landholders. With the 2007 confirmed discovery of commercially viable offshore oil reserves in Ghana (Jubilee Field) and predicted production set for late 2010 or 2011, there has been increased international interest in the Ghanaian market on the part of both oil and gas and auxiliary services sectors – as well as companies from unrelated sectors anticipating future economic growth in the country. Further oil and gas exploration continues and optimism is high for further discoveries.
India is a story of growth and opportunity. India’s sustained growth of around 8% in 2008 and growing dynamism in several of its regional markets have created wide and diverse business prospects for U.S. exporters and investors. While 2009 growth estimates are more modest, hovering around 5.7-6.3%, India remains one of the growing, dynamic economies in the world. The current economic downturn has not affected India to the same extent as the United States, though most Indian companies remain apprehensive and are extremely cautious with large expenditures. Worldwide economic difficulties notwithstanding, U.S. multinationals are sold on India and are expanding and deepening their market penetration. U.S. firms with advanced and niche-market products and services are entering the market for the first time, or are replacing legacy distributors appointed in the slow-growth past with more capable and aggressive representatives. Many smaller American firms have begun to view India as a top anchor market for their products and services as well. The marked rise of U.S. exports to India, the daily business press announcements, the rapidly expanding demand for Commercial Service India matchmaking programs and due diligence services, and the many business development trade missions visiting India all point to India being open for business.
Security remains a serious concern for both domestic and international businesses. Corruption and the shortcomings of both regulatory structures and legal protections will continue to be challenges. However, the sharp declines in sectarian violence and acts of terrorism throughout Iraq in 2008 were marked by an increased interest in business opportunities. This spike of interest is a signal for seasoned exporters and investors that now is the time to pursue the significant business opportunities in Iraq in almost every sector. In 2008, the U.S. Department of Commerce brought its first U.S. Business Trade Mission to Iraq in over twenty-five years. The GOI finalized two significant, multi-billion dollar contracts with U.S. companies in 2008. Boeing signed a $6 billion contract with Iraqi Airways, and General Electric signed a $3 billion deal with the Iraqi Ministry of Electricity. The improved security situation contributed to the phenomenal growth in the number of Iraqi delegations travelling to our IBPs. CS Iraq adjusted its strategy to meet the pressing demand from Iraqi businessmen eager to do business with U.S. firms. To quote one Iraqi businessman, “you know what you’re getting when you deal with American firms, and we want quality and good prices.”
Israel’s dynamic and diverse market offers U.S. exporters opportunities in a wide variety of sectors. Its high-tech, pro-American business community is familiar with U.S. business norms, and a multitude of U.S. firms are already doing business in and with Israel. The U.S. is Israel's largest single country trade partner, despite heavy European competition. Israel – U.S. commerce has grown seven fold since signing a Free Trade Agreement in 1985. Nearly all tariffs on trade between the U.S. and Israel have been eliminated since 1995. Hi-tech and defense dominate Israel's trade numbers, and Israel remains a global center for hi-tech design and R&D. Hi-tech continues to provide the best opportunities for U.S.-Israel commercial partnerships, specifically in safety and security equipment and services, defense equipment, medical technologies and biotechnology products. Power generation and education/training also represent other good opportunities.
Jordan is making the right moves to establish itself as an important regional and international trading hub, strategically located in the center of the Middle East. As the third largest recipient of U.S. Government assistance in the world, Jordan has nurtured a strong relationship with the United States since the 1940s. Though still a developing country, Jordan's labor force is well educated with literacy rates over 90%, and one simply cannot ignore the overriding sense of optimism in Jordan today. The single-most important achievement in U.S.-Jordan trade relations occurred in December 2001, when the Free Trade Agreement between the United States and Jordan entered into force. As of January 1, 2005, 95% of all tariffs on U.S. exports to Jordan in all major categories have been eliminated. The U.S.-Jordan FTA has dramatically boosted bilateral trade, which has tripled in just 5 years to over $1 billion. In addition to the FTA, Jordan's political and economic stability, its good business infrastructure, and its revived role as Gateway to Iraq offer U.S. exporters several reasons to seriously consider business opportunities in Jordan.
Kenya is the most developed economy in Eastern Africa. With a nominal 2008 gross domestic product (GDP) of USD 29.3 billion, it is also the economic, commercial, and logistical hub of the entire region. Kenya’s estimated population is 36.9 million. Kenya enjoys an extensive (if uneven) infrastructure, a large portion of the population that is extraordinarily well educated, English-speaking, and multi-lingual, and a strong entrepreneurial tradition. Nairobi is the undisputed transportation hub of Eastern and Central Africa and the largest city between Cairo and Johannesburg. The Port of Mombasa is the most important deep-water port in the region, supplying the shipping needs of more than a dozen countries despite stubborn deficiencies in equipment, inefficiency, and corruption. Kenya's financial and manufacturing industries, while relatively modest, are the most sophisticated in Eastern Africa. Its tourism industry, one of the most successful in the world,continued to expand until early 2008. While Kenya’s mineral resources are limited, it is a potentially important source of valuable materials such as titanium, and some oil exploration is taking place off the Indian Ocean coast.
An important U.S. partner, the State of Kuwait is a strategically located ally in the oil-rich Arabian Gulf. To Kuwait’s northwest is Iraq. To the southwest lies Saudi Arabia while the Iranian city of Boushehr is 120 kilometers away. Kuwait has a population of 3.4 million and is a member of the six-nation Gulf Cooperation Council (GCC). Kuwait’s per capita income is among the highest in the GCC. Oil and government spending dominate the economy. Crude oil reserves have been estimated at 98 billion barrels--9% of world reserves--accounting for nearly half of GDP, 95% of export revenues, and 90% of government income. Kuwait’s economy grew significantly in early 2008 as a result of record high crude oil prices, and its 2008 GDP is estimated at $156 million. For the last 5 years, Kuwait’s commercial imports from the U.S. have steadily increased, totaling $2.3 billion in 2007 and exceeding $2.5 billion in 2008. Automobiles and automotive parts accounted for approximately a quarter of American commercial exports to Kuwait in 2007. Oil and gas field equipment, telecommunications and IT equipment, electric generator sets, medical equipment, building materials and supplies, and electronics were also leading export sectors for U.S. firms.
Lebanon’s economy is based on laissez-faire philosophy. An overwhelming majority of the economy is dollarized. The country has very few restrictions on the movement of capital across its borders. Foreign investors are allowed to manage and hold business and private assets without any restrictions, and the Lebanese Government does not require investors to engage in any particular sector or project. The Lebanese Government’s intervention in foreign trade is minimal. Since 1999, Lebanon has observer status at the WTO, and is preparing for full membership in 2009. Lebanon, with a population of 3.8 million, is the 68th largest market for U.S. exports. During the first nine months of 2008, the United States exported $1.1 billion worth of goods to Lebanon, representing a year-on-year increase of 81percent. In 2008, the top five U.S. exports to Lebanon were vehicles, mineral fuel and oil, machinery, agricultural commodities, and medical instruments.
Libya - one of the largest countries in North Africa – boasts large oil and natural gas reserves and a consumer market of almost 6 million. Since the re-establishment of diplomatic relations with Libya in 2004, the United States has lifted economic sanctions against the country and has removed Libya from the U.S. list of states that sponsor terrorism. With these new developments, Libya is now more accessible to U.S. companies. Libya is a challenging but potentially rewarding market. With proper planning and foresight, U.S. companies can take advantage of commercial opportunities in almost every sector, from oil and gas to agriculture to telecommunications and tourism. The Libyan economy depends primarily upon revenues from the oil sector, which contributes roughly 95% of export earnings, about one-quarter of GDP, and 60% of public sector wages. The recent highs in global crude prices have allowed Libya to accumulate foreign exchange reserves estimated at $50 billion. Oil production stands at 1.7 million barrels a day and the government plans to increase these figures to three million barrels a day by 2010. Libyan authorities estimate that it would take between $7-10 billion in new investments in the oil and gas sector to reach their stated production goals.
Strategically located along the Strait of Gibraltar just a seven-hour flight from JFK and three hours from Paris, Morocco is seen more and more as a regional hub in North Africa for transportation and business. Morocco’s moderate Mediterranean climate on 2,750 miles (3,500 km) of coastline and its developing infrastructure make it an attractive location for business and leisure. Morocco’s Association Agreement and Advanced Status with the European Union (EU) have spurred manufacturing development in Morocco, an activity that has also been heightened by the FTA. Morocco will rely on these key trade agreements to stimulate economic growth and to foster the job creation necessary to facilitate social and educational reform. The U.S.-Moroccan Free Trade Agreement (FTA) is one of the most comprehensive free trade agreements that the U.S. has ever negotiated. Morocco is the second Arab and first African nation to have an FTA with the U.S. The FTA will provide U.S. exporters increased access to the Moroccan market by eliminating tariffs on 95 percent of currently traded consumer and industrial goods. It will also level the playing field with European competition and provide enhanced protection for U.S. Intellectual property. Moroccan officials anticipate that the FTA will be a catalyst to accelerate and reinforce the country’s economic reform process by allowing greater competition and the formation of international partnerships in key sectors such as insurance and banking, and by greatly liberalizing the Moroccan textile and agricultural tariff structures.
Nigeria is Africa’s most populous country and arguably the most culturally diverse society in the world, with approximately 250 ethnic groups among its 140 million people. The country is essentially a mono-sector economy that is highly dependent on oil. The oil and gas sector accounts for over 90% of the country’s foreign exchange earnings. The country’s GDP for 2007 was $294.8 billion (estimated), with the following sector contributions: agriculture 17.6%, industry 53.1%, services 29.3%. The decline in Nigeria’s agricultural and non-oil industrial capacity has continued to exacerbate its dependence on imports. The United States accounts for at least 80% of the imports in the oil and gas sector. Most Nigerians are positively disposed toward the United States and have a strong affinity for U.S. products. Nigeria has many honest businessmen and women eager to form partnerships with U.S. counterparts. Nigerian and U.S. authorities are working together to combat the fraud industry. In 2005, a National Cybercrime Coordinating Committee was established under the office of the National Security Advisor at the Presidency to coordinate activities of several local agencies charged with the responsibility to reduce cyber crime. Some U.S. companies are excluding Nigeria from their African commercial strategy based on alarmist, misleading and often incorrect information, and may miss out on excellent emerging market opportunities as a consequence. If U.S. business travelers prepare prudently, a business trip to Nigeria can be an enjoyable and rewarding experience.
With a population of approximately 162 million people and a rapidly growing GDP turnover of more than $130 billion, Pakistan continues to offer significant trade and investment opportunities for U.S. businesses. The following areas are expected to grow rapidly during the next few years: telecommunications, information technology, power generation (both thermal and hydroelectric), airport and ancillary facilities, oil and gas, franchising and construction. With GDP growth averaging nearly 7 percent for the last four years, a strong export sector, and a stable currency, Pakistan is reaping the fruits of several years of stringent macro-economic adjustment. The government has tackled some of the most difficult economic reform issues, including Pakistan’s massive debt overhang. Pricing has been broadly deregulated, including in the energy sector, and import tariffs rationalized and broadly reduced. The central bank has been granted unprecedented autonomy and capital market prudential oversight has been strengthened. The present administration has focused on far-reaching structural reforms to privatize public sector organizations, strengthen public and corporate governance, liberalize external trade and has pledged to maintain an open and welcoming investment climate.
Qatar’s economic performance is expected to remain strong in 2009, despite the current global economic downturn. Qatar’s economy will continue to grow robustly because of planned increases in its gas production. Six new liquefied natural gas (LNG) super trains will come on line, fueling strong economic growth. Qatari’s real GDP growth was 13% for 2008, and is projected to be around 10% for 2009. The decline in GDP is attributed to falling oil prices and world demand, compounded by the global economic crisis. In 2008, the oil and gas sector accounted for 61% of overall GDP, while the nonoil and gas sector accounted for 39%. Per capita GDP in Qatar is among the highest in the world: $65,000. There is no personal income tax in Qatar. Commercial ties between the United States and Qatar have been expanding at a rapid pace over the last five years, with trade volumes growing by more than 340%, from $738 million in 2003 to $3.2 billion in 2008. Over the same period, U.S. exports increased 580 percent to $2.7 billion, making the United States the largest import partner for Qatar.
With a nominal GDP estimated at $365 billion in 2008, Saudi Arabia is the largest and most stable economy in the Gulf. The Saudi economy weathered the recent economic and financial crisis far better than other economies in the area, thanks largely to its prudent, conservative economic and financial policies. Saudis have been doing business with Americans much longer than they have with any other major economic power, going back to the 1930s. Since then, American know-how, expertise, and assistance have significantly contributed to the expansion and modernization of the Saudi economy. Saudi business people are familiar with Americans and with the way Americans do business. Saudi business people, for the most part educated in the United States and fully conversant in English, genuinely like and respect Americans and actually want to do business with us. Business people in Saudi Arabia welcome offers of cooperation and partnership with U.S. companies. The size and continued growth of the Saudi economy, the fact that the Saudi currency or riyal is pegged to the U.S. dollar (at 3.75 riyals per dollar), and the pro-American outlook of Saudi business circles, all make Saudi Arabia an indispensable partner for U.S. companies who are serious about doing business in the Middle East.
With its capital city of Dakar located on the westernmost point of Africa, Senegal is a gateway to the continent. This semi-arid country slightly smaller than South Dakota has some of the best transportation, telecommunications and communication infrastructure in West Africa. Dakar, Senegal’s capital city has become the transportation hub of West Africa region, with a number of airlines flying eastbound towards the other African countries and northbound to Northern Africa (Morocco and Tunisia), Europe and the United States. With the recent arrival of Delta and South African Airways, there are currently three daily flights between the U.S., Senegal and South Africa. The Port of Dakar is the first major port-of-call from Europe and is well served by major shipping lines. The Port serves as an entrepot transshipment center for landlocked nations in West Africa. The Port of Dakar has deep draft at 11 meters and a wide access channel, which allows around-the-clock access. Many companies use Senegal as a regional center for their West Africa operations. With continued instability in Cote d’Ivoire, there has been some relocation of regional operations from Abidjan to Dakar over the past six years. Senegal is one of Africa’s most politically and economically stable countries. Since independence from France in 1960, Senegal has been a functioning democracy. Free and fair elections in 2000 brought President Abdoulaye Wade to power, ending 40 years of Socialist Party rule. He was re-elected on February 25, 2007.
South Africa is a country of 48.7 million people that is rich in diverse cultures, people and natural heritage. Enjoying remarkable macroeconomic stability and a pro-business environment, South Africa is a logical and attractive choice for U.S. companies to enter the African continent. It is the most advanced, broad-based and productive economy in Africa, and had a gross domestic product (GDP) of $283.5 billion and a real growth rate of 5.1 percent in 2007. The South African economy is characterized by standards similar to those found in developed countries. Its service sector is well established and growing, and the economy is increasingly well managed with slow but steady industrial productivity gains. It has a well-developed physical infrastructure that is comparable to OECD standards. South Africa boasts a sophisticated financial sector with well-developed financial institutions and a stock exchange in Johannesburg (JSE) that ranks among the top exchanges in the world. South Africa is a vast country covering 1.22 million square kilometers and it is the world’s largest producer of platinum, vanadium, chromium and manganese. Recently, South Africa has seen rapid increases in both inbound and outbound Foreign Direct Investment (FDI).
UAE Motorola, and many more. US companies see the UAE as an excellent place to establish a regional presence because of the can-do, pro-business orientation of the leadership, and the stability of the country. The UAE, a model for digital readiness in the Middle East, has embraced the Internet age. Mobile phone and PC usage levels are among the highest in the Middle East. The Emirate of Dubai, capitalizing on its strategic trading position between Central Asia, the Middle East, and Africa, is growing dramatically. This emirate has attracted international investment, companies and visitors with landmark projects such as vast housing developments and the ambitious man-made Palm Islands, which include private residences and hotels. Abu Dhabi has also begun developing several new mega projects of its own, including Sadiyat Island, which will feature the Abu Dhabi Guggenheim Museum, designed by famed American architect Frank Gehry. Dubai’s Jebel Ali Free Zone (JAFZ) has over 2,500 companies, including 150 US-owned firms. Other Dubai free zones include Media City, Knowledge Village, Internet City, and Dubai International Financial Center. Borrowing on the success of JAFZ, other emirates have also created free zones.
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