USDA will sponsor mission to Ireland to expand business links - United States Department of Agriculture

Business America, August 27, 1990

The U.S. Department of Agriculture (USDA) plans a Business Opportunity Mission to Ireland, Oct. 15-20, 1990. The purpose is to facilitate mutually beneficial business linkages, such as joint ventures, marketing, and technology cooperation, between U.S. and Irish companies.

USDA is primarily targeting American food producing and processing companies that are interested in expansion and export development, in locating in Ireland, or in working with Irish firms on new product development, licensing know-how, and technology, and/or that intend to export to the European Community or third-country markets in Europe, possibly in Eastern Europe and the Middle East.

Some 20 Irish companies have been identified and have submitted company profiles. Most are in food production/ processing, while some are in agribusiness/export-related services and distribution/trading. Most of the companies are small (on American scale, i.e., with sales of $2-$IO million), some are medium-sized, and there are a few large companies (mostly cooperatives).

Product areas include, but are not limited to: wood products (hardwood and softwood) for packaging, construction, and garden furnitures; dairy products (cheeses, butter blends/spreads, casein, and other products); meat processing (beef and pork), fresh, frozen, and cooked products (sausages, meat cuts, offals); smoked fish (salmon, eel, trout, and crab); specialty and convenience foods (frozen and chilled ethnic foods, coated products, re-formed meats); confectionary products marshmallow, jelly, Turkish delight); frozen food processing and cold storage facilities; and trading and wholesale/food service distribution.

The Irish companies are looking for marketing know-how and access, specialized food processing technologies, and, in some cases, financing. Some of the Irish companies are seeking access to U. S. markets.

Coras Trachtala, the Irish Export Board (CTT), in cooperation with the Shannon Development Authority, will host and coordinate the mission. For more information contact Maria NemethEk, USDA/OICD, Private Sector Relations Division, tel. (202) 653-7873, fax (202) 653-7724. engineering, construction and public works, and consulting services. There is no limit to foreign participation in capital service companies working totally for export, except that the foreign participation must be a minority shareholder when in partnership with a Tunisian firm which does not operate entirely for export.

American investment in Tunisia now totals more than $30 million. It is mostly in oil exploration, but there is a U.S. presence in Tunisia's food processing, financial, and manufacturing industries.

There have been other major steps taken to support expanded U.S.-Tunisian business ties. In October 1989, a Double Taxation Treaty was signed which avoids double taxation on corporations or individuals active in both countries. It is awaiting ratification by the U.S. Senate.

On May 15, 1990, a U.S.-Tunisia Bilateral Investment Treaty (BIT) was signed in Washington, D.C. during the visit of President Ben Ali. The BIT must be ratified by both the U.S. Senate and Tunisia's National Assembly. It will become effective 30 days after the instruments of ratification have been exchanged. The BIT is reciprocal in nature, and covers future as well as existing investments. It guarantees American investors:

* The right to establish their investments on a basis no less favorable than that accorded to investors of third countries; and, subject to existing laws, on a basis no less favorable than that accorded to domestic investors;

* Treatment of investments that is no less favorable than that accorded t(; domestic investments or to investments of nationals of any third country, whichever is more favorable;

* International law standards for expropriation and compensation thereof;

* Free transfers of capital (with a three-year balance of payments exception limited to the proceeds from the sale or liquidation of the investment); and

* The right to submit disputes to international arbitration through the World Bank's International Center for Settlement of Investment Disputes.

Above all, the Tunisian Chamber of Deputies formally adopted the Protocol of Accession to the General Agreement on Tariffs and Trade (GATT) on June 25. This was the final step in Tunisia's route to full GATT membership. Lower tariffs on certain products should now make U.S. exports more competitive.

The recovery in Tunisia's economic picture is encouaging. The economy showed 3.1 percent real growth in 1989, and investment rose 8.5 percent from $2.0 billion to $2.2 billion. Foreign reserves were $939 million in January 1990, up 12 percent from January 1989. Tunisian exports grew 35 percent in 1989 to almost $3.1 billion. Manufacturing industries expanded 4.8 percent, with the textile industry being the star performer with a growth rate of 10.2 percent. Imports continue to rise following the 1986 lifting of restrictions on imports of raw materials, spare parts, semi-products, and equipment; imports rose by 31 percent in 1989 to $4.6 billion.