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Photo: Joao Paulo
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Table of Contents
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Introduction: Why Portugal?
Bordering Spain and speaking a language all its own,
Portugal invokes a romantic notion of breathtaking
scenery, rich history and cobble-stone roads. The
small country of Portugal is the oldest nation state
in Europe, having essentially established its current
borders in the 12th century. A world power during
the 15th and 16th centuries, Portugal had an empire
stretching from Latin America to Asia. It has reformed
its government in the past twenty years, granting
independence to its former African colonies and joining
the European Union in 1986.
Although Portugal is a European country it looks towards
the Atlantic and to trade with others. After all,
Portugal discovered trade routes to Africa before
Columbus landed in America! U.S. exporters have increasingly
found this market to be receptive and eager for their
goods. Bilateral relations between the United States
and Portugal are excellent, characterized by shared
democratic values and similar foreign policy perspectives.
As in many other small countries, personal relationships
are a key component of doing business here. The U.S.
Commercial Service can help your company build these
personal relationships to successfully expand your
international sales to Portugal. Portugal can be an
excellent base of operations for doing business in
Brazil, Africa and in the rest of Europe.
Economic Outlook
Portugal has become a diversified and increasingly
service-based economy since joining the European Community
in 1986. Over the past decade, successive governments
have privatized many state-controlled firms and liberalized
key areas of the economy, including the financial
and telecommunications sectors. Riding a crest of
positive world economic news and EU investment in
the late 1990’s, Portugal’s economy boomed.
In the past couple of years, however, both its economy
and government financing have slowed considerably.
It has embarked on a wide-ranging, microeconomic reform
program, which should have a positive impact on long-term
economic growth potential.
As a member of the European Monetary Union (EMU) since
1999, Portugal has experienced exchange rate stability,
price stability and lower exchange rates. Portugal’s
economic growth has been above the EU average for
much of the past decade, but fell back in 2001-03.
Portugal's economic growth over the last decade has
been accompanied by heavy investment in infrastructure,
largely funded by the EU.
Portugal at a Glance:
| Population |
10.5 million
|
| Capital |
Lisbon |
| Government
Type |
Parliamentary democracy
|
| Literacy |
93.3% |
| GDP:
purchasing power parity |
$182.3 billion |
| Primary
Import Partners |
Spain 28.1%, Germany 15%, France
10.2%, Italy 6.5%, UK 5.2%, Netherlands 4.5% (2002) |
| Primary
Imports |
machinery and transport equipment,
chemicals, petroleum, textiles, agricultural products |
| Primary
Export Partners |
Spain 20.3%, Germany 18.4%, France
12.6%, UK 10.5%, US 5.8%, Italy 4.8%, Belgium
4.5% (2002) |
| Primary
Exports |
clothing and footwear, machinery,
chemicals, cork and paper products, hides |
| Trade
with U.S. |
U.S. exports to Portugal: 862,822,000
(2003), 862,666,000 (2002), 1,258,425,000 (2001)
|
| Primary
Industries |
- textiles and footwear
- wood pulp
- paper and cork
- metalworking
- oil refining
- chemicals
- fish canning
- wine
- tourism
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Best Prospects for U.S.
Exports:
There are many industries where U.S. exporters have
made great strides in Portugal. Top prospects in 2004
are:
1. Telecommunications Equipment
2. Computer & Software
3. Internet & e-commerce
4. Computers & Peripherals
5. Pollution Control Equipment
6. Medical Equipment
7. Energy Services
8. Franchising
9. Defense Services
10. Tourism
Success Story - Papa John’s: Exporting Good Taste
With over 3000 units worldwide, Papa John's International
Pizza Co. is the fastest growing pizza chain in the
U.S. – and with the help of the U.S. Commercial Service,
is becoming a household name around the world. Based
in Louisville, Kentucky, Papa John's is rapidly expanding
its international franchises in Europe, Asia and the
Americas. Papa John’s had to look no further than
its local Louisville U.S. Export Assistance Center
(USEAC) to find the export counseling it needed to
find international success.
During the past several years, Papa John’s has worked
closely with the Louisville USEAC and our international
offices to find global opportunities. The Commercial
Service provided intensive counseling, market research,
franchise event information, and trade contacts that
have been vital to Papa John's expansion. Papa John’s
made extensive use made extensive use of the Gold
Key Service, trade missions, and other franchisee
search services in numerous markets to satiate the
worldwide demand for its pizza.
With its market open to U.S. franchises, Portugal
was a natural fit for the pizza company. In 2003,
Papa John’s used the Gold Key Service to help the
firm locate master franchisee candidates. The Portugal
office provided detailed guidance about the Portuguese
market and coordinated the firm's meetings with franchisees.
As a result of this assistance, Papa John's signed
a master franchisee for the Portuguese market, and
plans to open 50 units in the country.
Doing Business in Portugal
For U.S. companies doing business in Portugal, they
will find practices relatively similar to other European
nations. However, there are a few key points that
every U.S. business should keep in mind when working
with Portugal:
Photo: Joao Paulo
- Local Representative. Portugal is a small
country and knowing people in your industry is important.
Therefore exporters need a local representative who
must have good contacts in order to be aware of future
contracts and to participate in tenders. The U.S.
Commercial Service can help you find a local representative
to increase your chances of success in this market.
- Impact of the EU. If homework has been done
for other EU markets it is basically done for Portugal.
To look at it another way, if a U.S. firm starts with
Portugal they are basically ready to expand into any
other European Union country. Many projects are EU-funded,
so an EU partner is desirable when bidding on these.
- The Iberian Peninsula. Portugal and Spain
is not one homogeneous marketing area. Normally your
Spanish distributor should not be asked to cover Portugal
unless the Spanish company is willing to set up a
separate Portuguese entity to handle this. If Spanish
distributors consider Portugal an extension of the
Spanish market, they are largely ineffective in Portugal.
- Slow Down. Business takes longer as compared
to northern Europe because personal contacts are important.
Your customers want to get to know you before they
will trust you.
Market Research
- Market
Research
- Automotive
Sector Briefing
The Automotive industry in Portugal employs 80,000 workers
in about 10,000 companies (automobile distributors,
component manufacturers, component importers/distributors,
services, etc.). This industry generates more than 6.6
billion euros per year (including 4 billion in components,
mostly for the assembly plants). Learn more about this
sector
- Portugal:
2004, the year of private management in Health
The Health sector in Portugal is broadening and becoming
more open. Four hospital projects will be launched in
2004, creating great opportunities for investment and
participation by U.S. companies.
- Portugal
Country Commercial Guide
Let us promote your company
Looking for sales leads or potential sales representatives
in Portugal? The U.S. Commercial Service in Lisbon
is offering, for a limited time, a free listing on
the Portuguese-language version of our website, which
targets an audience of Portuguese importers and commercial
buyers. We will translate a description of the product
or service for which you are seeking Portuguese representation,
distribution or sales prospects.
Learn
more about this opportunity!
Contact us Today:
In 2003, the U.S. Commercial Serviced helped companies
export $13,744,000 of goods and services to Portugal.
Learn
how we can help you today!
Contact your local U.S. Export Assistance Center:
http://www.export.gov/comm_svc/eac.html
Lisbon:
U.S. Commercial Service
American Embasssy Lisbon
Avenida das Forcas Armadas
1600-081 Lisbon
351-21-770 2528
Oporto:
U.S. Commercial Service
Avendida da Boavista, 3523 Room 501
4100-139 Porto
351-22-618-6607
Senior Commercial Officer Greg Taevs at Gregory.Taevs@mail.doc.gov
or 351-21-770-2526
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