Zfcf&H) SUPPLEMENT TO International Commerce MARKET FOR U. S. PRODUCTS IN THE PENNSYLVANIA ST ATI UNIVERSITY LIB! DOCUMENTS SECTION mm DEPARTMENT OF COMMERCE PUBLICATION Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/belgiummarketforOOwalk A Supplement to International Commerce BELGIUM a market for U. S. products By Robert H. Walker Bureau of International Commerce U.S. DEPARTMENT OF COMMERCE Luther H. Hodges, Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Eugene M. Braderman Director, Bureau of International Commerce Robert H. Walker has been with the U.S. Department of Commerce as an International Economist since 1942. He is presently the Belgium-Luxembourg Desk Officer in the Office of International Regional Economics. Mr. Walker holds undergraduate and graduate degrees in Foreign Service from the School of Foreign Service and the Graduate School, Georgetown University. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. - Price 45 cents Foreword Four billion dollars a year is spent by Belgium on imports. United States exporters share in that market to the extent of $375 million — about 9 percent. These rounded figures are representative but the point is clear. There is a rich and highly competitive market in Belgium for the aggressive U.S. exporter. Belgium is, moreover, a growing market. This book introduces you to the Belgian market. It provides general marketing information on the country, guidance on prospects for sales of se- lected commodities of special interest, and related material essential to the U.S. businessman preparing to sell goods in Belgium. For decades Belgium has been one of the great trading nations following an historically liberal trading policy. And for a long time Belgium has been an important customer of the United States. Friendship between our two countries is traditional and U.S. products long have been popular with the Belgian people. They enjoy one of the world's highest living standards, which, like ours, is based on a private enterprise economy. But more than $3 billion still is spent abroad by the Belgians each year somewhere else than in the United States. This book will help you to tap that potential. £ma**l. 7n. /y**^»t«4«- EUGENE M. BRADERMAN February 1963. Director, Bureau of International Commerce in Contents Page Foreword iii Belgium — Market 1 ndicators viii CHAPTERS I. Scope and Nature of the Market 1 Present Import Level and Pattern 1 Developments Affecting Imports 3 Consumption Patterns and Trends 4 General Levels of Consumption — Changes in Consumption. II. Distribution Facilities and Services 7 Marketing Channels 7 Import Channels — Wholesale and Retail Channels — Government Pro- curement. Aids to Marketing 9 Market Research — Advertising Media — Business Associations — U.S. Marketing Aids. Transportation Facilities 13 Commercial Centers and Ports — Railways and Roads — Inland Water- ways — Air Services. III. Trade Regulations and Practices 23 Import and Exchange Controls 23 Import Duties — Other Requirements and Charges. Trade Procedures and Customs 24 Methods of Importing — Quotations and Payment Terms — Shipping Documents — Credit Facilities — Established Trade Customs. IV. Guidelines for the U.S. Exporter 27 The Approach in the United States 27 Services of the U.S. Department of Commerce — Other Domestic Service Agencies. The Approach in Belgium 28 Investigation of the Market — Chambers of Commerce — Trade Fairs — Exchange of Information — Delivery Dates — Price Quotations — Packag- ing — Servicing — Other Considerations. V. Market Analysis for Selected Commodities 33 Foodstuffs 33 Frozen and Convenience Foods. Home Appliances 34 Refrigerators and Freezers — Ranges — Washers and Dryers — Small House- hold Appliances. Clothing and Textiles 36 Machinery and Other Industrial Equipment 38 Earthmoving, Materials-Handling, and Farming Equipment — Machine Tools — Electrical Equipment — Packaging Machinery. Chemicals and Allied Products 39 Chemicals and Pharmaceuticals — -Plastics and Rubber. Building Materials 40 Miscellaneous Products 41 APPENDIXES Page A. Notes for the Business Traveler 43 General Country Information 43 Climatic Conditions 43 Health Conditions, Medical Facilities 43 Hotel Accommodations 44 Food and Clothing 44 Local Transportation J 44 Passports and Visas 44 B. Selected Economic Data.- 45 Table 1. Population by Age and Sex, December 31, 1960 45 Table 2. Economically Active Population by Industry Grouping, December 31, 1961 45 Table 3. Belgium-Luxembourg: Imports of Select Commodity Groups, Total and From the United States, 1960-61 45 Table 4. U.S. Exports to Belgium by Commodity Groups and Principal Commodities, 1958-61 46 Table 5. Belgium-Luxembourg: Imports by Principal Country of Origin, 1960-61 47 Table 6. Belgium-Luxembourg: Balance of Trade and Percentage of Cover- age, 1950-60 47 Table 7. Total Installment Sales by Commodity, Time Period, and Value During First Half of 1962 47 Table 8. Commodity Composition of Total Credits Accorded by Financers, January-June 1962 48 Table 9. Proportion of Credit Accorded by Financers by Commodity Group, January- June 1962 48 Table 10. Number of Registered Radios and Television Sets, 1955-61 48 C. Selected Sources of Additional Information 49 Official Belgian Publications 49 Other General Sources 49 U.S. Department of Commerce Publications 49 MAPS General map of Belgium iv CHARTS I. BLEU Imports, 1961, Percentage of Total by Major Suppliers 2 II. Composition of U.S. Exports to BLEU, 1961 2 III. BLEU Imports, 1961, Percent of Total by Commodity Group 3 IV. Population by Age and Sex, December 31, 1960 4 V. Belgium's Economically Active Population, by Industry Grouping, De- cember 31, 1961 6 VI. Contracts in Effect and Credit Outstanding at End of Period, 1954-62__ 6 VII. Ships Entering Antwerp and Tonnage, 1937, 1955-61 16 VI PHOTOGRAPHS Page 1. City Hall, Grande Place, Brussels x 2. Ghent industrial center 5 3. Belgian marketplace 5 4. Belgian supermarket displays 8 5. Brussels International Trade Fair 10 6. Trade Fair displays 11 7. Floating elevators in Port of Antwerp 13 8. Construction work in Cockerill shipyards, Antwerp 14 9. Cement plant on Albert Canal, Lixhe 15 10. Rail and tram cars in Bruges 17 11. Commerce on Albert Canal 18 12. Construction along the Meuse River 19 13. Panoramic view of Brussels 20 14. Small barge on the old Charleroi-Seneffe Canal 22 15. Belgian business modernizes equipment 25 16. Powerplant construction near Liege 29 17. Flourishing steel industry 32 18. Steel works at Athus 33 19. Refineries at Antwerp 33 20. Frozen food display in Brussels supermarket 34 21. Textile mill at Bruges 35 22. Belgian carpetmaking 36 23. Lacemaker demonstrates ancient technique 37 24. Excavator in canal construction 38 25. Bucket excavator in use 39 26. Petrochemical plant 40 27. Industrial material and equipment in use 41 28. Slag dumps of coal mines in Western Liege 42 29. Flax workers between Meuen and Ypres 42 ©75464 O— 63- VII BELGIUM POPULATION: 9,229,000 (December 37, 1961); 784 per square mile. AREA: 11,775 square miles, slightly larger than Maryland. LANGUAGE: Flemish in northern and western Belgium; French in the south and east. Brussels is bilingual. CHIEF CITIES: Five principal cities account for about two-fifths of total population (December 31, 7 96?). Brussels, capital and largest metropolitan area, 1 ,437,756; Antwerp, 873,052; Liege, 609,146; Charleroi, 466,494; and Ghent, 461,115. GROSS NATIONAL PRODUCT: $?2.76 billion, OEEC estimate, 7 960 at current market prices. MOTOR VEHICLES REGISTERED: 7,734,595 of which 935,638 were private automobiles; motorcycles, scooters, etc., not included (August I, 1962). RADIOS AND TELEVISION SETS: 2,672,850 radios and 820,709 television sets (licensed as of December 37, 7967). Broadcast- ing is Government monopoly. TELEPHONES: One for each 8 persons. Over 90% of telephones equipped for countrywide automatic dialing. Total sub- scribers, 823,643 (December 31, 1961). ELECTRICITY: 7,605 ki/owaff-hours consumed per capita (1961). Characteristics vary according to city: 110/220, 220/440, 50 cycles c/.c; 7 70/220, 220/380, 50 cycles a.c. COMMUNICATIONS: 6,200 miles of Government highways, and 25,000 to 30,000 miles of other roads and streets; 2,928 miles of railways — 557 electrified; 983 miles inland waterways. Major international airports at Brussels and Antwerp. VIII KET INDICATORS ■ EXCHANGE RATE: Official currency is the Belgian franc 11 franc - US$0.02). Official and free markets. Official market rate maintained between 49.625 and 50.375 francs per dollar. In free market all currencies negotiated at freely fluctuating rates. ■ ECONOMY: Predominantly industrial and relying highly on for- eign trade. Belgium, poor in natural resources except coal, im- ports raw materials for processing and manufacture for reexport. Economic life based on private enterprise. Major industries: Iron and steel, nonferrous metals, metal manufactures, glass, textiles, diamond cutting, and chemicals. Coal production, 2 1 .5 million tons in 1961. Agriculture characterized by very small farms and inten- sive cultivation, occupying about 10% of total population. Agricultural income accounted for about 5% of national in- come in 1960. Main crops: Wheat, sugar beets, coarse grains, flax, and hops. Livestock production is most important sector of agriculture. ■ FOREIGN TRADE: 7959 7960 7967 [Millions of dollars] Total imports (c.i.f.) 3,442 3,957 4,279 Total exports (f.o.b.) 3,295 3,775 3,924 Imports from United States (c.i'.fj 325 397 375 Exports to United States [f.o.b.) 436 358 367 ■ PRINCIPAL IMPORTS FROM UNITED STATES: Grains and grain prep- arations, nonelectric machinery, automobiles and other ve- hicles, cotton, chemicals, and pharmaceuticals. ■ PRINCIPAL EXPORTS TO UNITED STATES: Iron and steel, diamonds, glass, nonferrous metals, and textile products including carpets. )X City Hall, Grande Place, ( Bruss Courtesy Belgian Tourist Bur m r ■ W 1 . .' -**r*1 CHAPTER I Scope and Nature of the Market The Belgian market is a sophisticated one. Belgians are quality conscious and are willing to pay well for high-grade merchandise repre- senting sound value — an attitude which applies to industrial products as well as to consumer items. In general, American goods have a strong appeal and enjoy a good reputation in Belgium. Belgium ranks high among the major foreign customers of the United States, and bright possi- bilities exist in this important market for expanding sales of American products. Belgium's governmental system is strong and securely founded on democratic traditions. Eco- nomic life is based on private enterprise with little Government intervention. These factors permit the Belgian business community to operate in a competitive society, not unlike that in the United States. The country's businessmen are enterprising and experienced in the intricacies of foreign trade. Belgium's location and excellent transportation system make it most attractive as a distribution center for Western Europe. The country is experiencing an extended period of prosperity. The gross national product has been growing at an annual rate of about 3 percent during the past few years. Industrial activity is high and has followed a general uptrend. The influx of foreign investment continues to accel- erate, stimulating industrial production and bringing new processes and products for domestic consumption and export. With few exceptions, labor relations have been good and unemployment low. Foreign trade has reached progressively higher levels. Belgium's financial structure is strong. Sub- stantial domestic funds are available for invest- ment, and gold and foreign exchange reserves have strengthened measurably. The economy is predominantly industrial and relies to a high degree on international trade. Be- cause it is a processor nation, Belgium must import, large quantities of raw materials and semimanufactures. Establishment of enterprises by foreign firms and new and enlarged Belgian factories have given impetus to increased imports of machinery and industrial equipment. As a result of expanded economic activity, wages have risen and personal incomes have grown. With remarkably steady wholesale and retail price levels, the increase in retail sales reflects a higher sales volume, rather than increased prices for consumer goods. The Belgian consumer has achieved one of the highest standards of living in the world. The United States supplied 9 percent of total imports into Belgium-Luxembourg (BLEU) in 1961. However, the United States share of that market declined from 10 percent in 1958, even though our exports to BLEU increased by 21 per- cent in that period. Events in the Common Market are developing rapidly, and United States exporters should waste no time analyzing the Belgian market to assure their present position and to take advantage of future opportunities. PRESENT IMPORT LEVEL AND PATTERN Belgium-Luxembourg's (BLEU) imports have increased steadily and impressively for a number of years, broken only by the recession of 1958. Imports, which were valued at 156,447 million francs ($3,129 million) in 1958, rose 10 percent in 1959 to 172,090 million ($3,442 million) and 15 percent in 1960 to 197,854 million ($3,957 million ) . The upward trend continued in 1961 as imports Graph I.— BLEU Imports, 1961 Percentage of Total by Major Suppliers situation which was repeated in. 1961. Purchases from the EEC in 1960 were greater than 48 percent of total imports, and in 1961 they rose above the 50 percent mark. Essentially a processing nation whose labor force is engaged to a considerable extent in pro- ducing for foreign markets, Belgium traditionally imports foodstuffs, raw materials, and semifinished products, and exports semimanufactures and fin- ished goods. Principal imports are grains, fruits, vegetables and other foodstuffs, ores and concen- trates, chemicals and pharmaceuticals, coal, pe- troleum and petroleum products, textiles and textile products (notably cotton and wool), precious stones (principally diamonds), base metals, transportation equipment (especially automobiles), and various types of machinery and industrial apparatus. Graph II. — Composition of U.S. Exports to BLEU, 1961 Source: Bulletin Mensuel du Commerce Exterieur amounted to 210,952 million francs ($4,219 mil- lion), 6.6 percent above the 1960 period. France was BLEU's principal supplier j^rior to World War II. In the years immediately follow- ing the war, the United States gained that posi- tion, supplying goods unobtainable in war-ravaged Europe. Since 1953, the Federal Republic of Germany has been the main supplier, contributing during 1958-61 more than 16 percent of total BLEU imports. Following Germany, the prin- cipal suppliers are the Netherlands, France, and the United States, in that order. As would be expected, the greater part of BLEU foreign trade today is carried on with other Euro- pean countries, particularly with other members of the European Economic Community (EEC), i.e., the Federal Republic of Germany, the Nether- lands, France, and Italy. Sales to the EEC countries in 1960 for the first time amounted to more than 50 percent of total BLEU exports, a Miscellaneous 3.8% Animals and Inedibl Animal Products 1.9* Wood and Paper 2.0 Source: U. S. Bureau of the Census The United States ranks high as a supplier in a number of these groups, particularly for grains, fruits and fruit juices, organic chemicals and phar- maceuticals, raw cotton, machinery and apparatus, and automobiles and aircraft. DEVELOPMENTS AFFECTING IMPORTS Belgian economic activity has continued to ex- pand since 1958. Except for the ailing coal industry, most industries have operated at high levels, many reaching progressively higher levels of activity. A new peak of industrial activity was established in September 1962. Belgium is poor in natural resources and im- ports large quantities of raw materials to process into semifinished and finished products. Approxi- mately 65 percent of all the country's industrial production is sold abroad. Thus, maintenance of the present level of prosperity is contingent upon the continued high volume of world trade and upon Belgium's ability to compete in world markets. To become more competitive in foreign markets, Belgium has developed a program to strengthen its industry. Various incentives are offered to in- crease domestic and foreign investment in an effort to vitalize present industries and to attract new ones. Domestic industry, aided by this program, has expanded, and foreign investors have intro- duced new processes and products. Membership in the EEC has deeply affected BLEU foreign trade. As previously indicated, the percentage of BLEU sales to, and purchases from, its EEC partners continues to rise. The Benelux tariff, which is applicable to im- ports into Belgium, has been modified by various steps taken to establish the Common External Tariff (CXT) of the EEC. The Benelux duties applicable to non-EEC countries were adjusted January 1, 1961, as the first step toward the gradual introduction of the CXT. Because the rates of the Benelux tariff were generally below the level of the CXT, the adjustment resulted in increases on a large number of items. Duties ap- plicable to imports from other EEC members have now been reduced by 50 percent for industrial Graph III.— BLEU Imports, 1961 Percent of Total by Commodity Group Plastics and Rubber 2.1 % Sources Bulletin Mensuel du Commerce Exterieur products and by 35 percent for most agricultural products, following the latest cuts made on July 1, 1962. Under the provisions of the Rome Treaty, the CXT is to be established not later than 1970, and duties on imports from EEC members must have been abolished by that time. It is possible how- ever, that this date may be advanced in view of recent EEC acceleration decisions. BLEU import and exchange controls are liberal. A relatively small number of products are sub- ject to import licensing requirements when import- ed from free world sources. Where such licenses are required from non- Communist coun tries, usually they are readily granted. Quantitative re- strictions are applied to only a few products, but they are administered in such a manner as to con- stitute a negligible impediment to U.S. exports. CONSUMPTION PATTERNS AND TRENDS General Levels of Consumption Belgium enjoys one of the highest standards of living in the world. Per capita income is among the highest in Europe, although it is less than half that in the United States. Consumption, ac- cordingly, is high. It is estimated that in 1961 consumer expend- itures were distributed as follows : 32.2 percent for food; 13.7 for clothing; 10.5 for lodging; 11.5 for heat, light, furniture and durables ; 14.7 for travel, education, medical care and similar expenses ; and 17.4 percent for luxuries and amusements. The gross national product at current market prices for the years 1958-60 x is shown in table 1. 1 Data for 1961 are not yet available as the National Statis- tical Institute of the Ministry of Economic Affairs, which pre- pares the data, lost key personnel and records in the disastrous collapse of a building in Brussels. Table I. — Belgium: National Product and Expendi- ture, 7 958-60 [At current prices in billion Belgian francs] Item 1958 1959 1960 Private consumption.. 377.2 62.8 89.0 0.8 191.6 171.0 551.0 401.0 67.0 98.5 -1.3 194.7 187.5 572.4 417.4 Public consumption __ _. 72.3 Gross domestic fixed capital formation 106.5 Changes in stocks 3.7 Exports of goods and services Less: Imports of goods and services 221.8 SIS. 7 Gross national product at market prices 608.0 Source: General Statistics, OEEC Statistical Bulletins, September 1961. Of the total population in Belgium— 9,229,000 in 1961 — about 42 percent lived in the five major cities. These cities with their 1961 population are : Brussels, 1,437,756; Antwerp, 873,052; Liege, 609,146; Charleroi, 466,494; and Ghent, 461,115. Belgium is one of the most densely populated countries of the world with 777 inhabitants per square mile. Because of this concentration, the market is relatively compact and a wide consumer group is available in a small geographical area. Thousands 2,500 2,000 — 1,500 — 1,000 — 500 — Graph IV. — Population by Age and Sex, December 31, 1960 Less 5 to 15 15 to 25 25 to 45 45 to 65 65 to 75 75 to 85 85 years than years years years years years years and 5 years over Source: Statistical Bulletin, National Institute of Statistics Courtesy Belgian Tourist Bureau Typical scene in Ghent, one of Belgium's leading industrial centers. Crowds throng Belgian marketplace. Courtesy National Geographic Magazine © National Geographic Society Graph V. — Belgium's Economically Active Population, by Industry Grouping, December 31, 1961 Thousands 4,000 — - 100% 3,000 - 1 2,000 - ; .' ► .'-'. -■.:•-.,: 35.2% 37.8% 1,000- .:'• -'.,- - 7.1°J 7.1% 6.9% rr^r 3.2% 2.7% '.':'■ V.' mm ■.■' rr^i v V> ^ *£ o° «? Source: National Bank of Belgium Changes in Consumption Buying habits in the Belgian market are chang- ing. With the rising personal income, propor- tionately less is required for the purchase of essen- tials, leaving more for the acquisition of higher quality merchandise and nonessential items. The continual entry of young persons into the actively purchasing public has induced a change from many of the traditional and conventional pur- chases. Installment sales have been rising, especially since the moderate relaxation of installment- buying controls in 1959. Amounts of such sales for 1959-61 were: 1959, 8.2 billion francs ($164 million) ; 1960, 9.6 billion ($192 million) ; and in 1961, 10.1 billion ($203 million). Outstanding credit at the end of 1961 amounted to 11.8 billion francs ($236 million) — an alltime record. The most important installment purchase categories are motor vehicles and household and personal items. The relaxation of installment controls has brought about much consumption which otherwise would either have been deferred or possibly never brought into being. Price is not always the dominant factor in the purchasing of many goods. The Belgian con- sumer buys on the basis of superior quality, bet- ter design, and utility, and sometimes, particularly with respect to U.S. goods, on the basis of prestige appeal. An increasing number of working housewives also are contributing to the change in buying habits. The working wife desiring to spend as little time shopping as possible, wishes to obtain her requirements quickly and in as near ready-to- serve form as possible. A trend toward self- service stores and prepackaged products, therefore, is increasing. This, in turn, has led to increased consumption of branded merchandise with stand- ardized prices. Graph VI. — Contracts in Effect and Credit Outstanding at End of Period, 1954-62 1954 1955 1956 Source: Statistical Bulletin, Notional Jane Jane Jane Jane 1957 1958 1959 1960 CHAPTER II Distribution Facilities and Services Until recently the distribution system in Bel- gium depended predominantly on small retail units. The way was opened in March 1959 for a change, when the "loi de Cardenas," a law pro- tecting the small shopkeeper by restricting the expansion of retail department and chain stores, was abolished. To ease the impact created by the expiration of the statute, a gentleman's agreement was reached between the major distribution or- ganizations and the Minister for the Middle Classes whereby the big store owners agreed not to expand their operations before the spring 1 of 1961. On January 1, 1961, the agreement came to an end and complete freedom of competition was restored. As in the United States, the larger stores and chains buy directly from abroad, with their buy- ers selecting the purcbases. Smaller units buy principally from agents and wholesalers in Bel- gium only, occasionally purchasing individual items direct from the foreign producer. Advertising is widespread and is effectively used in the sale of goods. Transportation facilities in Belgium are excellent. MARKETING CHANNELS Import Channels Belgium has all types of establishments dealing with foreign trade, from the firm import- ing for its own account to the import broker. Many chambers of commerce circulate trade op- portunities to their members and are active in bringing buyer and seller together. Foreign concerns customarily have an exclusive representative for the whole country. The ma- jority of the larger wholesale firms engage in the import-export business and also handle domestic distribution. If a firm in Belgium is not interested in dealing with an exclusive distributor, the usual business practice is for the firm to approach the manu- facturer direct. In this case, the exclusive dis- tributor, in accordance with the terms of his con- tract, will normally receive a commission on such a transaction. Belgium lias become the seat of operation for a substantial number of U.S. firms. These subsid- iaries act as sales agents, assemblers, or manufac- turers of the firm's products. In many instances, the subsidiary is a combination of all three. Such firms import for warehousing against future sales in Belgium and other parts of Europe, for servic- ing products of the parent company, for assembly and sale, or for manufacturing. Wholesale and Retail Channels The latest available survey of the number of business firms in operation is a census made on December 31, 1947. It indicates a total of 19,302 wholesalers, 22,736 wholesaler-retailers, and 273,280 retailers. In each classification, the great majority consists of small business firms. The continuing predominance of small business firms was borne out in a recent study by the Na- tional Employees Federation (Centrale Nationale des Employes). It reported that there are about 276,000 retail establishments in Belgium, or about 33 customers per store. In the grocery field, in- tegrated stores comprise 34 percent of the total, Courtesy of the Belt/ion Embassy Belgian supermarkets feature modern displays of food products. made up of chain stores, 11 percent, consumer co- operatives, 11 percent, and lai-ge stores, 12 percent. Independent grocery stores comprise the remain- ing 66 percent, of which 20 percent are associated in voluntary groups, and the remaining 46 percent operate entirely on their own. For many small retailers the store is merely a supplementary, and not the main, source of family income. The increased tempo of commercial and in- dustrial activity in recent years has brought about changes in the distribution system which are more and more noticeable. While the loi de Cardenas was still in effect, a trend toward integration of the retail trade began through efforts of the larger stores to bypass the provisions of the law. These took the form of setting up voluntary chains and the creation of "middenstandswarenhuizen," a type of independent medium-sized department store. With the establishment of these two forms of outlets, some department stores were projected into the wholesale field, since the chains and the middenstandswarenhuizen obtained their supplies contractually from the large department stores. Some 300 independent retailers are supplied by such stores. Although the move injected a few large units into the wholesale trade, wholesaling in Belgium is still characterized by the large num- ber of small units engaged therein. Retail outlets in Belgium range from the large department store to the small shop owned and operated by an individual. Although the pre- ponderance of retail outlets are small shops, such enterprises are decreasing in number. A trend toward concentration has been noted, especially since the demise of the loi de Cardenas, with the formation of voluntary chains, the expansion of department stores, the establishment of mid- denstandswarenhuizen in areas not large enough to support a major department store, and the de- velopment of chain stores under one management. Supermarkets and shopping centers are begin- ning to appear; discount firms, especially those handling electric domestic equipment, and self- service stores are springing up. Self-service is not confined to smaller units. Recently two large de- partment store chains introduced self-service in their stores. As a result of these changes in retailing with concurrent new methods of selling, the smaller enterprises with little capital have been forced into a weaker position and the more dynamic ones are The Belgian system for public tender generally merits. Even though the department stores have developed from family businesses, their growth and success are due largely to investments from sources outside the family. Government Procurement The Belgian system for public tender generally does not discriminate against foreign enterprises. The two methods for allotting contracts are : (1) Competitive open call for tenders, for all bidders without distinction of nationality ; and (2) private sales contracts, for a certain number of restric- tively fixed cases. A decree of October 1935 established the Con- sultative Commission for Contracts and Tenders. All organs of the Government are required to sub- mit to the Commission all contracts intended to be concluded, if these contracts comprise "either the designation of a bidder, subcontractor, or dealer of foreign nationality, or the employment of foreign personnel, or the furnishing or use of products or materials other than Belgian products or materials." The decree does not, however, prevent foreign- ers from submitting tenders, and the competent administration is not obliged to follow the advice of the Commission. The Commission merely com- pares the bids and gives a slight margin of pref- erence to Belgian bids. In principle, Belgian con- tractors are given preference if their price is not more than 10 percent higher than the lowest foreign contract bid price. Any firm, whether Belgian or foreign, may bid on public works projects. Bids, however, may be awarded only to Belgian contractors listed with the Commission des Enterpreneurs at the Ministry of Public Works. Two exceptions to this pro- cedure are permitted: (1) A foreign firm may be awarded the contract if no Belgian contractor is able to execute the work envisaged; and (2) a foreign firm, which has submitted a bid which is more than 10 percent below that of the nearest Belgian competitor, may be awarded the contract by special authorization of the Minister of Public Works. AIDS TO MARKETING The Belgian market, though not large, is very active, and has a substantial yearly turnover. The country is a good customer of the United States, and its economy reflects fairly accurately the atti- tudes and conditions found in other industrial- ized Western European countries, particularly in other member states of the European Economic Community. Although U.S. products are avail- able in quantity, there is room for the introduction of new products and expansion of lines already represented. The Belgian consumer is receptive to most promotional methods effective in the United States. Market Research l Market research, as known in the United States, is relatively new to Belgium but is growing con- stantly. Although economic data utilized in mar- ket surveys and studies are readily available in quantity, some forms are still considered as con- fidential in the business world. Several firms in Brussels, some of which are American-owned or are affiliated with U.S. firms, engage in market research. A number of these are also engaged in the advertising promotion field providing complete service for, their clients. The Belgian businessman is becoming increasingly ap- preciative of the value of such research. The entrepeneurs reliance on his own judgment is being supplanted more and more by recourse to market research techniques. In somewhat parallel vein, several consumer organizations have been established for the pur- pose of testing and making comparisons between specific goods and services. The results are cir- culated by means of periodicals. Some of these publications state which products are the "best buys" in almost identical fashion to similar pub- lications in the United States. Since 1950 several quality-control agencies have arisen in Belgium. These are distinct from the consumer organizations but have similar objec- tives. 1 See also the publication, A Directory of Foreign Advertising Agencies and Marketing Research Organizations, U.S. Depart- ment of Commerce, 1959. 135 pages. 45 cents. Advertising Media Advertising techniques are well developed in Belgium with increasingly substantial sums being spent on advertising each year. For example, it is estimated that $60 million was spent in 1958 for advertising — a 50-percent increase in 6 years. Since Belgium is a bilingual country, use of both Flemish and French is essential to the conduct of a successful advertising campaign. Newspapers and periodicals. — The daily press is probably the best advertising medium in Bel- gium. In 1958 there were 59 daily newspapers — 19 in Flemish, 39 in French, and 1 in German. Total circulation of daily newspapers was about 2.6 million. In addition, there were 12 weeklies in French and 13 in Flemish. The circulation of the weeklies amounted to about 1.7 million. Some 500 weekly and monthly magazines, as well as technical journals and economic reviews, also are published. Consumer goods advertisements are carried in most newspapers, while technical ma- terials and goods are advertised in newspapers, technical journals, and specialized publications. Radio and television. — The Belgian radio and television systems are Government-owned and ad- vertising is not permitted. Radio Luxembourg, however, is operated much along the lines of American stations and accepts advertising on radio and television. The television facilities of Radio Luxembourg naturally are technically limited in range; however, the radio broadcasts are heard all over Belgium. The programs are extremely pop- ular and offer an excellent entree to the Belgian consumer. Exhibitions and fairs. — Belgium has a great many exhibitions and fairs each year. These range from large general international fairs to small technical and specialized exhibitions, cov- ering consumer goods, technical items, and indus- trial products. Many are closed exhibitions, open only to those specifically interested and dealing in the particular field. Others are public exhibitions permitting general entry. While some expressly limit participation, the majority are open to Amer- ican and other foreign exhibitors. The two most important general fairs are the Brussels Interna- tional Fair, held in the spring, and the Ghent International Fair, presented in September. The world's goods are displayed at the Brussels International Trade Fair. Courtesy Presence de Bruxelles h 1 MntJuESE i-i k ^lti^^l:^^^raj ilfe "*"^:3§te ILSfilrtfc'- J?* ; Courtesy Presence de Brurelles Displays at the Brussels International Trade Fair attract buyers from more than 70 countries. Store displays. — Window displays, particularly in Brussels and the larger cities, are effectively used to display merchandise. In the larger stores and better specialty shops, items for sale are taste- fully exhibited. Department stores from time to time feature goods of one specially chosen country, generally for a 2-Aveek period. Merchandise from the chosen country is then displayed throughout the store, with special exhibits, flags, emblems, pic- tures, tourist information, and other promotional material located in strategic spots to enhance the display. Other means of display. — Some advertising is done in the motion-picture theaters in the form of short films, demonstrating merchandise and identifying the sellers. Placards and posted bills are widely used in the cities to generate sales. Large cities feature many electric signs, some of which are very intricate. Linear electric signs, comprised of a battery of electric lights, are some- times located at strategic points to carry news bulletins interspersed with advertising plugs. Streetcar and bus advertising is widespread. Advertising agencies. — A substantial number of firms, located mainly in Brussels, offer complete advertising services, such as advice, planning, art. and copy work, media selection, placement, and translations into French, Flemish, or other lan- guages. The larger firms prepare advertising for transmission via Luxembourg's radio and televi- sion systems, and also offer direct mail and mailing list, service. Some firms, in addition to regular advertising services, engage in market research and analysis, trade or industry surveys, and public opinion polls in connection with advertising campaigns. Several companies are specialized in the fields of motion-picture theater screen advertising and in outdoor and billboard advertising. Most of these are located in Brussels. At least two United States advertising firms have subsidiaries operating in Belgium which also maintain market research facilities. 11 Business Associations There are 36 chambers of commerce and industry in Belgium. These are regional interprofessional associations representing and sponsoring the economic interests of the area in which they are located. In addition to certain official acts, such as delivering certificates of origin, the chambers supply regional data concerning facilities, ports, means of communication, power networks, and other sectors of economic activity. The chambers sometimes maintain lists of local firms likely to reply to business proposals, and may be utilized as facilities for seeking agents or representatives. Customs formalities, fiscal questions, socal prob- lems, trade policy, and other facts on Belgium as a whole may also be obtained from the chambers. Because of their intimate relationship with Belgian business, the chambers of commerce and industry provide good liaison between the United States businessman and the particular region in Belgium with which he wishes to have commercial relations. The chambers are united in the Federa- tion Nationale des Chambres de Commerce et dTndustrie de Belgique (National Federation of Chambers of Commerce and Industry of Belgium) located in Brussels. Another important commercial group is L' Asso- ciation Beige des Negociants Exportateurs et Im- portateurs (The Belgium Association of Export and Import Merchants), a national federation of Belgian export and import firms located at Antwerp, which has been in existence for some 38 years. Among its members are some of the country's most important foreign trade firms which, for the most part, import for their own account. The Association maintains close liaison with Government agencies connected with foreign trade, It also operates a service to generate imports and exports by bringing together buyers and sellers. The Federation des Industries Beiges (Federa- tion of Belgian Industries, F.I.B.) in Brussels is an association representing at the national level some 35,000 industrial enterprises associated through F.I.B.'s member federations. It comprises industrial federations and groups in all the major fields of Belgian industrial activity. In its function, the F.I.B. undertakes to speak for Belgian industry. It has developed spe- cialized research services and issues a number of publications. It invites inquiries which it will forward to the appropriate member federation concerned with particular products. Like the associations mentioned above, the member federa- tions deal with questions of obtaining buyers and sellers for various products. U.S. Marketing Aids Many U.S. banks correspond with Belgian banks. The foreign departments of such U.S. banks are well equipped to give service and advice in matters of foreign trading. The Morgan Guar- anty Trust Company of New York maintains an office in Brussels, the only branch of an American Bank in Belgium. A number of Belgian banks maintain branches in the United States. The American Chamber of Commerce in Bel- gium, located in Brussels, is an organization com- prised of American firms engaged in business in Belgium and of Belgian firms either representing U.S. manufacturers or otherwise interested in trade with the United States. It has membership in the United States Chamber of Commerce and in the International Chamber of Commerce and it cooperates with other American chambers of com- merce in Europe on matters of mutual interest. Unsubsidized and wholly independent, the Amer- ican Chamber assists both Belgian and American concerns in making agency connections, advises American companies contemplating establishment of subsidiaries or branches in Belgium, and en- deavors to minimize differences between Belgian and American commercial interests. Aside from these U.S. private sources, data and information relating to general marketing condi- tions in Belgium can be obtained from the U.S. Department of Commerce's Bureau of Interna- tional Commerce, Washington 25, D.C., and re- garding specific commodities from the Business and Defense Services Administration, U.S. De- partment of Commerce, Washington 25, D.C., or from Field Offices of the Department located in principal cities of the United States. Marketing data may also be obtained from the Commercial Section, Embassy of Belgium, 3330 Garfield Street, NW., Washington 8, D.C., from any of the Belgian consulates general located throughout the 12 Floating elevators in the Port of Antwerp permit rapid grain transshipments from bulk- carrier onto coaster. ' m m mmmmmM Courtesy Belgian Trade Review United States, or from the Belgian commercial offices in Seattle, Wash., and St. Louis, Mo. Bel- gium's consulates general are located at the fol- lowing places : 620 Fifth Ave., New York, N.Y. ; 333 N. Michigan Ave., Chicago, 111.; 207 New Orleans International Trade Mart, New Orleans, La. ; 1004 Baltimore Ave., Kansas City, Mo. ; 444 California St., San Francisco, Calif.; 448 S. Hill St., Los Angeles, Calif. TRANSPORTATION FACILITIES Commercial Centers and Ports The two principal commercial centers of Bel- gium are the cities of Brussels and Antwerp. The secondary centers are Ghent and Liege. Bel- gium's other major cities are primarily industrial with commercial activity of lesser importance. 13 675464 O - 63 sjw&JsSife mi i?Ml~W J*.!*** aWirtiiflPJ' .ate. *i J3K ' • V- w,Ji 4pi* t '"' Pit*'^'. ^li^^SggSN Courtesy Belgian Trade Review Construction work in progress in the Cockerill shipyards in Antwerp. Belgium has only two ocean ports — Ostend and Zeebrugge. The other ports are inland. Ant- werp is the largest port in the country and one of the largest in the world. Ghent is second in im- portance. A large number of small ports handle traffic on Belgium's extensive network of inland waterways, and act as feeders to the larger ports. Antwerp. — With a history dating from the Ro- man period, Antwerp has long been an important seaport. It is situated on the right bank of the Scheldt River, and is approximately 55 miles from the North Sea. The port consists of two sections : Quays along the river front, and a large dock system connected to the river by five locks. There are 32 miles of quays, of which 28 miles are for oceangoing vessels and 4 for barge traffic. The water area of the docks amounts to 1,055 acres for maritime navigation and 86 acres for rivercraft. There are numerous municipal and privately owned cranes and hoists with capacities ranging from 2 to 150 tons. Large storage accommoda- tions for goods are supplied by municipal and private warehouses. Special warehousing facili- ties include: Graneries with storage capacity of 60,000 tons, cold storage chambers with capacity of 2,237,000 cubic feet, potash warehouses of 150,000 tons capacity, and tank storage capacity of 93,170,000 cubic feet. Cargo discharged at Antwerp by seagoing vessels in 1961 amounted to 23,232,000 metric tons and in January-June 1962 to 12,978,000. Cargo loaded for the same periods totaled 15,420,000 metric tons and 8,358,000 respectively. Ores, phosphates, grain, petroleum, coal and textile fibers account for about 80 percent of all goods imported into Antwerp. Iron and steel products account for from 30 to 40 percent of exports. Fertilizers make up an additional 16 percent. Other important exports are bunker oil, chemical products, glass, and cement. The Port, of Antwerp is carrying out a 10-year development plan in which 5.1 billion francs ($102 million) will be spent for the modernization and extension of harbor facilities in the period 1956-65. Plans call for the construction of docks, sheds, and landing stages, the installation of new cargo handling equipment, and the development of port- side industrial areas. Total berthing space for seagoing vessels and rivercraft will be increased from 32 to 47 miles. Ghent. — Belgium's second port, Ghent, is lo- cated 19 miles inland from Terneuzen, the Nether- lands. The port is connected with the sea by a canal which leads to the Scheldt Estuary at Ter- neuzen. The canal is sufficiently large to permit the access of oceangoing ships. Facilities include 14 7.5 miles of quay wall, 12.5 miles of banks with landing stages, 42 acres of sheds, 162 acres of open storage space, and 757 acres of water surface. Cargo handled in 1961 and January-October 1962, respectively, amounted to 2,016,000 and 822,000 metric tons discharged, and 732,000 and 420,000 tons loaded. Ghent is pursuing a port development plan to expand and renew facilities and improvement of the Ghent-Terneuzen canal and facilities be- gan in May 1961. In addition, a new lock is under construction at Terneuzen to accommodate ships up to 50,000 tons, permitting them access to the port of Ghent. Cargo handled in the Port of Ghent primarily consists of bulk cargo comprising about 90 per- cent of goods discharged and 80 percent of goods loaded. Representatives of incoming cargo are ore, pyrites, coal, lumber, phosphates, potash, sand, gravel, and various textile fibers. Outgoing cargo is principally made up of iron and steel, fertilizers, chemical products, building materials, textile products, and some general cargo. Zeebrugge. — Zeebrugge is the third ranking port in Belgium and one of the two ocean ports. Its facilities do not approach those of Antwerp or Ghent. The bulk of goods handled consists of both imports and exports of coal, coke, oil, mo- lasses, explosives, and general cargo. Zeebrugge is connected by canal with Brugge, another small inland port. New York City is linked to Zee- brugge by direct passenger service. Other ports. — Other Belgian ports of impor- tance include Brugges, Brussels, Nieuport, and Ostend. Except for Ostend, an ocean port, all are located inland. Free ports. — Belgium has no free ports or free trade zones as such. Its liberal provisions for storing, repacking, and other manipulations in warehouses and the existence of temporary free admission for further processing, however, pro- vide substantially the same facilities and advan- tages available in free ports or zones. The Belgian warehousing system is organized into customs bonded warehouses, private or com- mercial bonded warehouses, and private or com- mercial bonded warehouses by agreement. The customs bonded warehouses (entrepots pub- lic) are on premises belonging to the communes under the exclusive control of the customs. They are combined receiving and public warehouses. Goods are unloaded at the receiving end and after having been declared for warehousing, may be kept in the public end as long as storage fees are paid. The private or commercial bonded warehouse (entrepot particulier) is under the joint control of the owner and the customs authorities (keys Cement company installations on Albert Canal, Lixhe. Courtesy Belgian Trade Review "% being held by each), and is located on private property. Spirituous beverages, wines, and non- manufactured tobacco are stored in such ware- houses. The private or commercial bonded warehouse by agreement (entrepot fictif) is located on pri- vate property under the supervision of the owner but subject, to inspection by customs authorities. Partly manufactured iron and steel products, mineral oils, woods, certain grains, wines, flours, and fruits are representative of items stored in warehouses of this type. Through Antwerp, one of the world's major ports, Belgium is well served by shipping lines. Some 270 such lines connect Antwerp with the entire world. In addition to the many foreign lines servicing the trade routes from the United States to Bel- gium, the following U.S. shipping lines are in this service : United States Lines Co., Isbrandtsen Co., Inc., and Waterman Steamship Corp., servic- ing the North Atlantic coast of the United States to Belgium; United States Lines Co. from the South Atlantic coast; Bloomfield Steamship Co., Lykes Brothers Steamship Co., Inc., States Ma- rine Lines, Inc., and Waterman Steamship Corp. plying the run from Gulf ports to Belgium ; and States Marine Lines, Inc., running service from the U.S. Pacific coast. No U.S. lines are regularly employed in service on the Great Lakes route to Belgium. Graph VII. — Ships Entering Antwerp and Tonnage, 1937, 1955-61 20 15 10 5 Thousand Ships Source: Antwerp Port Statistics. 10 20 30 40 Million Gross Registered Tons 50 16 Courtesy National Geographic Magazine © National Geographic Society A world-famous foundry makes rail and tram cars in Bruges. Railways and Roads Belgium has one of the densest railway net- works in Europe. The standard-gage railway is operated by the Societe Nationale des Chemins de Fer Beige, a company primarily Government con- trolled but with some private participation. A narrow-gage road, engaged in interurban traffic, is incorporated into the system ; it has, however, de- clined in importance with the development of automotive transport. In June 1961, announcement was made of the Government's intention to pursue a plan of ration- alization of the railways over the next several years. This program to modernize facilities, which is now well under way, includes complete elimination of steam locomotives, increased elec- trification of lines, introduction of new cars, elim- ination of unnecessary lines, reduction of excess employees, and strengthening operations to reduce deficits and Government subsidies. At the end of 1961, the length of the Belgian railway network was 2,871 miles, of which 2,011 miles were open to passenger service and 860 miles open only to freight traffic. Of the total trackage, 594 miles (20.7 percent) were electrified. In con- nection with the modification being made in the system, the length of substitute autobus lines was increased to 2,083 miles, while regular public auto- bus service was reduced to 1,804. Belgian stand- ard-gage railways in 1961 carried 265,140,000 pas- sengers and 61,020,000 tons of freight, and in January-August 1962, 179,048,000 passengers and 40,512,000 tons of freight. 17 Courtesy of National Geographic Magazine © National Geographic Society Commerce on the Albert Canal invades a Belgian pastoral scene. This busy super waterway connects Antwerp with Liege. Belgium has excellent railway connections with all European countries. One of the main routes from London to the Federal Republic of Germany, Scandinavia, Switzerland, and Italy passes through Belgium via Ostend and Brussels. The main Paris-Amsterdan and Paris-Berlin lines are also run via Brussels. Motor transportation has been growing rapidly in Belgium in recent years. The Belgian highway system is well integrated and includes a limited amount of express highways. There are about 6,200 miles of Government highways, and some 25,000 to 30,000 miles of secondary roads, main- tained by the Provinces and municipalities. Provincial roads are gradually being placed under national administration and will cease to exist as a category within a few years. In 1962 alone, it was estimated that expenditures for express highways would reach 1,950 million francs ($39 million), while an additional 937 million ($18.7 million) were to be spent for ordi- nary roads, and 213 million ($4.26 million) for urban road improvements. Inland Waterways Inland waterways are of vital importance to the economy of Belgium and in 1960 carried slightly more cargo than did the railways. The 984-mile waterways system serves most of the industrial areas with the exception of the textile center of Venders and the steel area of Athus. The main ship canals include: The Ghent - Terneuzen (18 miles) of which half is in the Netherlands ; the Eoupel (20 miles) by which ships drawing 18 feet reach Brussels from the sea; and the Bruges canal (7.5 miles) from Zeebrugge on the North Sea to Bruges. The Albert Canal (80.5 miles) links Liege with Antwerp and accom- modates barges up to 2,000 tons capacity. In addi- tion, great use is made of the country's rivers and lesser canals which encompass Belgium in a network of waterways. The system dates mainly from the 19th century when a great number of the country's waterways, locks, and bridges were built to meet the require- ments of that era. As a practical matter, this meant the capacity to handle barges not exceeding 300 tons. Following World War I, the inland water network was modernized and in subsequent years the system has been improved and expanded. Currently, an ambitious plan for modernization is being undertaken. Standardization of locks and widening and deepening channels will increase the amount of tonnage carried, particularly on the secondary channels. The Belgian inland fleet contains over 6,000 barges, most of which are self-propelled, plus 187 tugboats and 300 tankers. 18 New mole under construction along the Meuse River. Courtesy International Bank for Reconstruction and Development ^jjgl ±~. ^^^ fartf&tk *§**iSS *» .^^ 1jm1 >„ *" * "" " .. ■* -A" r V L- wWfl^a aa, , "' : '':J .>.f IS i^i4i_fc jQiM-%$ 52 ?SL , a**. , !~ jW ;*i5@*£ r;a| ''l; t i-^PHflpCJ I III.? ,'r*_^>i HF^tl 111 6 ! B i nii nE&iQyliiBl SISWW.WB? iiii iiii iiii iiii iBijiiif till int M t'-^r fm» ■fi J J Id ■' • Ml 'JUu i ii » ffk£t_Jm* iW/2^ili T'.^^j' i^" w t=' H^ ' i »jp1' ,lj id o~ :fi ^-swwar Panoramic view of Brussels, Bel- gium's capital and largest city. Courtesy Belgian Embassy * * : rririiiiiii TSf-Hf- > WT ^ > uL III! w '•*» njs af£ > 4 5" nj ~ * o 3Mm Air Services In the field of scheduled transport, SABENA, a semiprivate organization controlled by the Gov- ernment, has a monopoly. SABENA operates both freight and passenger service. The move- ment of goods by air is limited usually to goods of a high unit value which can bear the higher costs of air transport or goods which are urgently needed. Air freight shipments, however, are play- ing a larger part in servicing equipment and many items, even of great weight, are shipped by air to keep machinery in operation if the expense entailed is warranted. In 1961 SABENA carried 727,608 passengers and 19,560 tons of freight and 522,901 passengers and 11,046 tons of freight in January-August 1962. The company maintains daily flights to other European countries, the United States, the Middle East, the Republic of the Congo (Leopold- Anile), and South Africa. A regular helicopter service operates between Brussels and Eiege, Co- logne, Duisburg, Rotterdam, Maastricht, and Eindhoven. Alternately, SABENA and an American airline maintain a daily service between New York and Brussels. The principal international airports are Brussels-National (about 20 minutes from the capital) and Deurne (10 minutes from Antwerp). These airports are used by numbers of foreign airlines which operate services to Belgium. Small barge on the old Charleroi-Seneffe Canal. Courtesy International Bank for Reconstruction and Development ■m ■'•fcc^'i ifcV V'." -i I 1 1 CHAPTER III Trade Regulations and Practices The foreign trade of Belgium is combined with that of Luxembourg- within the framework of the Belgium-Luxembourg Economic Union (BLEU). As a necessary corollary, the two countries have a common system of foreign trade controls. IMPORT AND EXCHANGE CONTROLS The licensing system of BLEU has its legal basis in a number of laws empowering the two Governments to control under a common system the import, export, and transit trade of the Eco- nomic Union. BLEU has removed all import restrictions based on balance-of-payment diffi- culties. An import license is required for only 215 classes, of which 155 are agricultural items. In the screening of license applications, the BLEU licensing authorities employ as criteria the effect of imports on the domestic economic sectors concerned. BLEU controls over imports from both dollar and nondollar sources are identical. At the present time, about 97 percent of Benelux imports are liberalized, i.e., admitted without quantitative restrictions. Items still subject to restrictions, however, are usually admitted in liberal quantities. Although licensing is maintained on some liberal- ized commodities, licenses are readily granted. BLEU foreign exchange controls date from 1944 and were instituted to control the transfer of any kind of goods and instruments of value be- tween the Economic Union and foreign countries. Under the regulations, no importer or exporter may enter into a definite commitment with a foreign seller or buyer without first having ob- tained from the appropriate Belgian or Luxem- bourg authority the import or export document required under BLEU's licensing system. These documents are incorporated in the special instru- ments required for goods not subject to licensing or in the import license in the cases where an import license is required. Exchange is granted auto- matically. When the value of an operation does not exceed 10,000 francs ($200), payment may be made without formalities. Import Duties ' Belgium, together with the Netherlands and Luxembourg, is a partner in the Benelux Customs Union, which was elevated to the status of an economic union by a treaty entered into force on November 1, 1960. Since January 1, 1948, under the Customs Union, the Benelux countries have had a common tariff which subjects imports from non-Benelux countries to identical rates of duty in the three Benelux countries. Goods originating in any of the Benelux countries or goods import- ed for consumption into the territory of one of the member states are exempt from customs duties in the territory of the other signatories to the Benelux Customs Union Agreement. A new customs tariff, based on the Brussels Nomenclature, was adopted by the Benelux countries, effective March 1, 1960. It replaced the common tariff which had been in effect since 1948. 1 See Import Tariff System of Belgium, Netherlands and Luxembourg, Overseas Business Reports, No. OBR-63-25, Feb- ruary 1963, for a general description of the tariff system. Information concerning the duty charged on any particular item can be obtained from the European Division, Bureau of Interna- tional Commerce, U.S. Department of Commerce. 23 As members (together with France, the Federal Republic of Germany, and Italy) of the European Economic Community (EEC) estab- lished by the Rome Treaty of 1958, the Benelux countries are committed to a policy of eventual free movement of goods, capital, and labor within the EEC member countries and the establishment of a Common External Tariff (CXT) on imports from third countries. In line with Treaty pro- visions, progressive tariff changes have been made since January 1, 1959. As previously mentioned, basic duties on intra-EEC trade in nonagricultural items are at present 50 percent lower, and on most agricultural items 35 percent lower than the January 1, 1957, rates. Rates on goods imported into Benelux from non- EEC countries made their first movement toward the CXT in January 1961. Since the Benelux duties for most products were below the CXT, the movement toward the CXT meant a general in- crease in duties on Benelux industrial imports from non-EEC countries. Further tariff changes will be made as the EEC progresses toward its ultimate goals. Internal duties will be progressively abolished, and external duties will be further adjusted toward the CXT. Benelux maintains certain preferential duty rates. Commodities coming under the provision of the European Coal and Steel Community (ECSC) and Euratom are not subject to Benelux duties when imported from a member country of the Communities. Certain goods originating in the Republic of the Congo (Leopoldville), Rwanda, Burundi, or overseas territories associ- ated with the Netherlands are totally or partially exempt from the Benelux customs duties. Other Requirements and Charges Like many other countries, Belgium maintains a number of regulations which, while technically not trade controls, directly affect the importation of various products. Such regulations are usually concerned with marking or labeling, health and phytosanitary controls, pure food and drugs, and similar matters. Generally, these requirements offer little impediment to normal trade. Belgium lias a number of taxes levied on all goods — both imported and domestic. Excise taxes are levied on all items containing sugar or ethyl alcohol, tobacco products, mineral waters, soft drinks, and certain petroleum products. A trans- action tax is assessed on all imported goods, with only a few exceptions. Luxury taxes are levied on certain goods, but items subject to the luxury tax are exempt from the transaction tax. An im- port license tax is charged on imports of some agricultural goods, including meat animals, some meat products, certain dairy items, gingerbread, and several fodders. TRADE PROCEDURES AND CUSTOMS Methods of Importing Belgians are experienced foreign traders and are well informed on the courtesies and practices of this kind of business. All types of foreign trad- ing enterprises, ranging from freight forwarders and agents of various kinds to direct importers purchasing for their own account, may be found in Belgium. Quotations and Payment Terms Sales quotations are usually given either c.i.f. port of destination, or f .o.b. port of shipment, plus actual charges for freight and insurance. The former method is generally preferred by Belgian importers. Large firms, however, sometimes buy on f.o.b. terms since they may prefer to arrange for the shipping and insurance of the goods them- selves. Quotations and invoicing are usually in terms of the currency of the country of origin. There is no uniformity in the method of pay- ment for imports into Belgium. All of the normal methods for payment are used. In recent years there has been some trend toward more liberal financing rather than payment by letters of credit or cash. Although there is a substantial number of shipments made under letters of credit, this does not reflect on the generally excellent payment standing of Belgian importers but rather indi- cates the customary handling for many staple com- modities and transit shipments. Knowledge of the market and of the customer must be the prime considerations leading to a greater use of sight drafts, time drafts, or open accounts. In view of the substantial competition built up in the Belgian 24 Belgian business is modernizing with up-to-date equipment, such as this check data- coding machine. markets, in many cases it may be necessary to relax terms. General terms of sale are payment within 30 to 90 days after delivery, varying with the com- modity and the credit standing of the purchaser. Shipping Documents - The bill of lading and the commercial invoice are the only general shipping documents required by Belgium on direct importations of goods. For E For details on the required shipping documents, as well as other information concerning shipments to Belgium, see Pre- paring Shipments to Belgium-Luxembourg, World Trade Infor- mation Service, part 2, No. 60-29, issued July 1960 by the U.S. Department of Commerce. Courtesy Belgian Trade Review air shipments the air waybill and a commercial invoice in duplicate are necessary. A certificate of origin is required on all shipments of goods which are to be transshipped or warehoused in a third country while en route to Belgium. Except for fresh salt-water fish other than salmon, no certificates of origin are required for direct ship- ments from the United States. No consular visa is needed on these documents. Shipments of plants and plant parts, fresh fruits, certain vegetables, certain animal products and live animals and birds must be accompanied by an appropriate sanitary or health certificate. The United States requires the filing of a ship- per's export declaration (Commerce Form 7525V) and, in many instances, a destination control statement. 25 Credit Facilities By far the greatest part of credit needed by importers can be provided by commercial banks. Credit to business generally takes the two tradi- tional forms of discount credits on one hand and of overdrafts or loans on the other. Terms are left to the discretion of the banks. These terms are influenced, however, by the National Bank's discount rates. Commercial bills or bank accept- ances of not more than 120 clays, properly vali- dated, may be rediscounted with the National Bank. Credit lines are fixed by the National Bank, commensurate with the importance of the commer- cial bank soliciting the rediscounting and in accordance with the prevailing credit policy. In certain instances, the National Bank admits medium-term financing of imports through bank acceptances. The Institut de Reescompte et de la Guarantie extends discount facilities to the banks for such bills as are not eligible to the National Bank because of their maturity. It also conducts open market operations buying bills either for its own account or as a broker. There are several mercantile agencies which specialize in supplying credit information 3 on firms throughout the country. The majority are located in Brussels and several have branches in Antwerp. In addition, certain banks furnish credit information at the request of the banker of the client concerned. Established Trade Customs Commercial language. — Belgium is a bilingual country using French in the southern and eastern sections and Flemish in the northern and western areas. The population is divided about equally into French- and Flemish-speaking groups. French and English are commonly used as busi- ness languages. The use of Flemish as a business language is primarily limited to commercial deal- ing's with the Netherlands and with South Africa. 3 See also the publication, Sources of Credit Information on Foreign Firms, U.S. Department of Commerce, 1958. 84 pages. 30 cents. French and Flemish, however, are extremely im- portant to the U.S. businessman entering the mar- ket or attempting to expand sales of his product. Although the understanding of English presents practically no problem in dealing with the Belgian importer or manufacturer, the situation is reversed when the private consumer or small businessman is involved. To the average Belgian housewife, English is still a language largely unknown. The wise businessman, accordingly, will have his pro- motional literature, advertising fliers, instructions and other sales aids printed in French or Flemish, as appropriate. Business correspondence. — Letters posted on the United States east coast require about 8 to 11 days by surface and 3 to 4 days by air for deliv- ery in Belgium. Postage on regular mail (surface letters) is 11 cents per ounce or fraction thereof and 7 cents each additional ounce or fraction. Un- sealed surface mail postage is 5 cents for the first 2 ounces or fraction and 3 cents for each additional 2 ounces. Airmail postage is 15 cents per half- ounce and 15 cents each additional half-ounce. Office hours. — Office hours are generally from 9 a.m. to noon and from 2 p.m. till 6 p.m. Belgian offices are closed on Saturday afternoon and Sun- day. Banks are open to the public until 1 p.m. Since the main meal is at mid-day, most offices and many stores are closed for a period of 2 hours at that time ; in most instances, however, someone remains on duty. A few department stores re- cently inaugurated evening hours. Holidays. — Official holidays in Belgium are: New Year's Day, Easter Monday, May Day (May 1), Ascension Day, Whitmonday, National Holi- day (July 21), afternoon of July 22 (in Brussels), Feast of the Assumption (August 15), All Saints' Day (November 1) , All Souls' Day (November 2), Armistice Day (November 11), King's Birthday (November 15), Christmas, and December 26. Except in special circumstances, work is not al- lowed on Sunday and legal holidays. Weights and measures. — The metric system of weights and measures is used in Belgium. The monetary unit of Belgium is the Belgian franc with a par value of $0.02 (US$1 = 50 francs). 26 CHAPTER IV Guidelines for the U.S. Exporter In selling the Belgian market, there are a num- ber of basic points to check. These fall into two sectors — those in the United States and those in Belgium. THE APPROACH IN THE UNITED STATES 1 Services of the U.S. Department of Commerce The Department of Commerce, both in Wash- ington and through its many Field Offices, offers a number of channels through which the U.S. exporter can approach the foreign market. Through the facilities of the American Foreign Service, the Department receives hundreds of spe- cific inquiries from people abroad, by name, seek- ing to buy or represent products manufactured in the United States. Each week these are brought to the attention of the exporter through the pages of International Commerce, the weekly periodical of the Department. In the Field Offices and in the Department in Washington, copies of Trade Lists, prepared by the Foreign Service, are available. Trade Lists identify firms handling specific commodities in foreign countries, and cover a wide range of products, trades, and services. These lists contain the basic information needed to locate customers, agents, distributors, licensees, and sources of sup- ply abroad. In addition to a listing of firms, each Trade List contains a summary of basic trade and industry data, a brief analysis of foreign trade in the commodity, government regulations affecting 1 See also the publication, What You Should Know About Ex- porting. A How-To Get-Started Handbook, U.S. Department of Commerce, 1962. 38 pages. 25 cents. trade, and other useful market data. Lists of importers and dealers indicate the relative size of each firm, method of operation, products handled, territory, and sales force. Lists of exporters and manufacturers indicate relative size or production capacity of each firm and name the products handled. Trade Lists may be purchased from the Commercial Intelligence Division, Bureau of International Commerce, U.S. Department of Commerce, Washington 25, D.C., or from the Department's Field Offices for $1 per list. Complementing the Trade Lists, there are World Trade Directory Reports on each of the listed firms. World Trade Directory Reports contain business particulars on individual foreign firms. These reports supply the detailed infor- mation needed to determine the competence and general reliability of specific foreign firms. They are prepared by the American Foreign Service, and represent a consensus of reliable sources of information. If the report on file is more than a year old, a revised current report is prepared with- out additional charge. The complete name and address of the foreign firm should be given when ordering World Trade Directory Reports. These reports are available to qualified U.S. firms or will be prepared on request through the Commercial Intelligence Division, Bureau of International Commerce, Washington 25, D.C., for $1 each. The reports also may be obtained through the Department's Field Offices. The Bureau of the Census report, FT 410, avail- able in the Field Offices, chambers of commerce and business libraries, lists U.S. exports by coun- try and shows the volume of goods being shipped to Belgium and other countries. A companion volume, FT 420, represents U.S. exports by com- 27 modity. These reports show the exporter whether or not his product is presently moving in trade with Belgium. Trade information may also be obtained from the Department of Commerce in Washington, which has official Belgian publications, regarding Belgium's imports and areas of competition from other countries. Reports on worldwide activity in specific indus- tries are available from the Department and Field Offices through the many publications of the Business and Defense Services Administration in which are contained readymade analyses. In the Overseas Business Reports (formerly the World Trade Information Service), are a wide variety of basic and operational in- formation and data connected with Belgium's economy and foreign trade. Information on tar- iffs and taxes effective in Belgium and import reg- ulations may be obtained from the Department's Bureau of International Commerce. Foreign trade specialists are available for con- sultation in Field Offices of the Department of Commerce. Trade specialists are qualified by training and experience to provide expert advice on all phases of foreign commerce. Their services are available through correspondence or personal consultation. Other Domestic Service Agencies Many service organizations, such as banks, in- surance brokers, transportation agencies, freight forwarders, advertising agencies, and market re- search organizations, among others, offer special- ized services for the exporter. Use of these agen- cies obviates the necessity for maintaining comparable operations, which for the small and medium business firm could be unduly expensive. The Chamber of Commerce of the United States, Washington, D.C., has published a new edition of Introduction to Doing Export and Import Busi- ness, which is available in local chambers of com- merce. This publication is a concise and use- ful manual with a wealth of helpful suggestions on almost every aspect of foreign trade. From the above sources, the exporter can ac- quire a substantial collection of reference material to help him determine whether his product can be sold on the Belgian market. Not only will it serve the newcomer but it will continue to help after he has entered the exporting business. THE APPROACH IN BELGIUM The exporter's investigation on the domestic front completes half the job. He must then ac- quaint himself with some important considera- tions in meeting the Belgian market. Investigation of the Market As in the United States, the U.S. exporter en- tering the Belgian market should take advantage of the tools available to him. Because of the nature of his product, a detailed research of the market may first be found desirable. A number of firms in Belgium engage in this service and may be contacted through the appropriate Trade Lists. The help of specialized organizations in Bel- gium is available to the businessman to formulate an advertising campaign and to select the most effective form of advertising media. These or- ganizations include advertising agencies and bro- kers, public relations firms, outdoor and billboard firms, and motion-picture screen advertising firms. Chambers of Commerce The facilities of the Belgian chambers of com- merce should not be overlooked in making contact with prospective purchasers and distributors. Close contact with member firms is maintained by these chambers and new and profitable pros- pects can be developed for the sale of American •roods. Trade Fairs The number of general and specialized trade fairs exhibiting in Belgium offer an effective chan- nel for the exporter to introduce his products directly to firms interested in purchasing and han- dling distribution. Many of the general fairs are open to the public, giving an opportunity to test popular reaction to the goods. 28 mvwu. Courtesy International Bank for Reconstruction and Development Powerplant under construction near Liege. 29 Exchange of Information Close contact between the American principal and his Belgian distributor is desirable and should be developed. While mail and telephonic com- munications suffice in most instances, the under- standing which is developed through personal visits finds no substitute. Business problems and questions can be resolved quickly rather than in terms of weeks. Close contact can keep the distributor apprised of new developments respecting the product and its promotion. Similarly, the U.S. businessman is kept acquainted with developments in the foreign field. One American company, relaxing its con- tact with an agent, suffered a serious downturn in business which required almost 2 years to re- build to its former position. Checking frequently with the agent and servicing his needs would have prevented this loss. Increasingly, U.S. producers are bringing mem- bers of their distributing firms to the United States for training. The expense involved has been con- sidered minor in view of the benefits reaped. Such training periods usually run from 2 to 4 weeks, during which time the Belgian distributor and/or members of his organization are acquainted with factory production methods, sales techniques, serv- ice functions, and methods of operating the American business. Companies maintaining such training programs report that this instruction is TRADE LISTS PROVIDE NAMES OF FIRMS IN BELGIUM Names and addresses of principal importers, producers, processors, wholesalers, and distrib- utors in Belgium, grouped by individual commod- ities and industries, are provided in the Trade List available on Belgium from the Department of Commerce. Information about size and type of operations and the sales territory covered also is included. TRADE LISTS may be purchased from the Commercial Intelligence Division, Bureau of Inter- national Commerce, U.S. Department of Com- merce, Washington 25, D.C., or from the Depart- ment's Field Offices for $1 per list. translated into complete familiarity with the product and generates genuine enthusiasm for it by the time the Belgian students return to their homeland. This knowledge and enthusiasm, in turn, is transmitted to the remainder of the dis- tributor's organization and results in greater sales. Firms contemplating the introduction of a training program should have French- or Flemish- speaking instructors to obtain maximum effectiveness from the course. Delivery Dates In selling abroad, not only does the U.S. exporter have his funds committed, but the Belgian importer is also financially involved. As a conse- quence, to keep a satisfied customer or distributor, it is imperative to meet obligations. Close atten- tion should be paid to delivery dates and terms. Failure to do so can cost the importer money and even open the door to competitors who are more circumspect. On the other hand, an effort to meet delivery obligations, even by use of air shipments in exceptional cases, will result in a satisfied dis- tributor and, most important, a satisfied customer who cannot help but be impressed by American efforts to meet the challenge of competition. Price Quotations In these days of stiffening competition, more and more potential foreign customers are insisting on c.i.f. price quotations. Since most U.S. manu- facturers are accustomed to quote only f .o.b. prices in the domestic market, this has created a real barrier to foreign trade. The U.S. firm which wishes to sell abroad is making efforts to give c.i.f. quotations, realizing that the f.o.b. price (espe- cially from the interior of the United States) is not meaningful to the potential Belgian importer. Packaging The American manufacturer is accustomed to shipping by domestic freight services where pack- ing can be light weight and damage from handling is held to a minimum. Ocean shipping, however, presents additional and unique problems. Because of increased handling and the possibilities 30 of sustaining water damage, proper packing is most essential. Substantial crates, boxes, and other packing, heavy enough to stand severe shock and rough handling and resistant to water and moisture, must, be used. Goods properly packed by the exporter or by a reliable forwarding firm will arrive in good condition ready for sale. Belgian regulations require some products to have special indications or notices on shipments. Information on such marking or labeling may be obtained from the Department of Commerce's Bureau of International Commerce. Servicing Certain products and equipment entail servicing to maintain them during their useful life. The exporter should make provision for establishing such servicing facilities by qualified personnel. Training of the distributor and key members of his team, as noted above, provides a built-in main- tenance function. Some large companies have found it profitable to maintain a separate engineer- ing staff, located in a centrally situated city, whose job it is to service equipment over wide areas and instruct local technicians in coping with out-of- the-ordinary problems. Personnel so trained fre- quently handle routine problems without recourse to the engineering staff. Other Considerations Belgium uses the metric system of weights and measures. Measuring and registering devices, gauges, and similar units on machinery and equip- ment should be calibrated to the metric system. The need to convert from the English to the metric system means slowed production and the possible introduction of errors in calculation leading to ruined work, lost material, and an unsatisfied customer. In addition to the many engineering manuals containing conversions and conversion formulae, a handy publication in the field is issued by the National Bureau of Standards. Entitled Units of Weight and Measure ( United States Customary and Metric) — Definitions and Tables of Equiva- lents, Miscellaneous Publication 233, December 20, 1960, it is available for 40 cents through the De- WTD REPORTS HELP IN SELECTING REPRESENTATIVES AND TRADING PARTNERS Information on private firms in Belgium is available to U.S. businessmen through World Trade Directory (WTD) reports. WTD reports include such information as type of organization, sales territory, lines of goods handled, operation methods, size of business, capital, sales volume, trade and financial repu- tation, and other business information. These reports are available to qualified U.S. firms or will be prepared on request through the Commercial Intelligence Division, Bureau of In- ternational Commerce, U.C. Department of Com- merce, Washington 25, D.C., for $1 each. The reports also may be obtained through the Depart- ment's Field Offices. partment of Commerce Field Offices or from the Superintendent of Documents, Government Print- ing Office, Washington 25, D.C. For the foreign market, U.S. electrical equip- ment and motors must be adapted to the local current. Alternating current is most generally used but direct current is also used in some cities. Voltages vary between cities and the current is 50 cycles. The chai-acteristics of electric current in Belgian cities are contained in a booklet, Electric Current Abroad, published by the Department for the information of manufacturers and exporters. English is rather widely understood in the Bel- gian business community and its use in business correspondence presents little problem. Belgium is bilingual, with French spoken in the southern and eastern sectors of the country and Flemish in the northern and western areas. Al- though English can be used in business corre- spondence, the Belgian housewife, small retailer, artificer, technician, and production worker, how- ever, is not so well acquainted with English. The use of the local languages, therefore, is a must in promotional literature, advertising, recipes, mix- ing directions, and in instructions for assembling, installing, maintenance, and use of equipment, machinery, appliances and other products. 31 Courtesy International Bank for Reconstruction and Developmer Flourishing steel industry offers possible market for U.S. equipment. Shown above is a run-out table at Ougree. 32 CHAPTER V Market Analysis for Selected Commodities This chapter deals with the market potentials in Belgium for a number of U.S. products. It is based on an on-the-spot survey in which inter- views were held with a large number of Belgian businessmen concerned with foreign trade. Many of the opinions expressed were ones on which there was general agreement, but there were also con- flicting ideas. The purpose of this product review is to in- dicate areas in which exports can be increased and to single out special trade problems. Successful export expansion, however, requires greater sell- ing effort by the U.S. manufacturer and his agents, and more flexibility by U.S. industry to adapt itself to the changing conditions of the Belgian market. The list of commodities considered is by no means exclusive. Responsible business circles point out that in view of the great prosperity with- in the country and the very liberal Belgian trade policy a more diversified range of U.S. com- modities might be sold provided that a number of obstacles can be eliminated. In the field of consumer goods, especially, U.S. exports face strong competition, both from Belgian producers and from third countries. The cost of many U.S. consumer items limits their pos- sibilities. Nevertheless, many varieties of U.S. consumer goods are stocked and are sold and many more could be sold because of their quality, design, novelty, or appeal as status symbols. FOODSTUFFS The Belgian public is especially attentive to foodstuffs. Price differentials may not be decisive if the quality of the food appeals to the Belgian housewife. More recently, attractively packaged foods have gained an increasing acceptance. Re- tailers expressed opinions that specialty canned fruit and canned juices could be sold in greater quantities if a stronger promotional effort were made. Belgians are big consumers of tomato juice. Vegetable juices with a tomato base have been enthusiastically received by Belgian guests in American homes, and it is fair to assume that Steel works at Athus, Belgium. Courtesy Belgian Trade Review Refining installations at Antwerp. Courtesy International Bank for Reconstruction and Development such juices would be accorded wide acceptance if available in the market. Interest has been ex- pressed in the importation of American wines and alcoholic beverages. The Belgian market has some dog foods but none to equal the American products in this line. Belgians own a great number of dogs (nearly one to a family) and they are cared for as a member of the family. The well-planned nutritious dog foods offered by American companies, both canned and otherwise, should have strong appeal. Frozen and Convenience Foods Frozen foods, including vegetables, ready-to- cook foods, and precooked foods, have only recent- ly appeared on the Belgian market, and certain consumer habits and food prejudices must be over- come. As supermarkets and shopping centers de- velop and as home refrigeration becomes more widespread, sales of these lines of U.S. goods may well be expanded. It would be advisable to demonstrate in supermarkets and major depart- ment stores how to prepare and serve such frozen foods, with samples offered to customers to show the quality and flavor of the U.S. product. Frozen fruit, such as peaches, pears, pineapple, and citrus fruit, as well as juices and juice mix- tures, are rather new to the Belgian market but Courtesy Belgian Embassy Frozen food display in Brussels supermarket. should find ready acceptance with the proper sales campaign. Large American shrimps are not gen- erally known but also should find buyers if neces- sary promotional efforts are made. Frozen U.S. turkeys could be of particular importance in the hotel trade. Recent promotional efforts have been effective in introducing frozen chickens to a limited sector of the Benelux market. In view of the favorable reception accorded these products, further promo- tion should develop an increasing market. In- quiries have been made regarding shipments of frozen meats for reexport to the Congo. Negative factors to be considered are limited distribution systems for frozen foods and the scarcity of refrigerated trucks. If these difficul- ties can be overcome — as experience in the United States and elsewhere demonstrates it can be — the outlook for U.S. frozen foods seems to be prom- ising. Prepared or semiprepared foods, "convenience foods,'' also show good possibilities for expan- sion — in particular, prepared cake mixes, bread and roll mixes, puddings, gelatine desserts, baby foods, and so-called instant foods. The rising cost of domestic help, as well as the increasing num- ber of married women holding jobs, are factors in breaking down consumer resistance to these foods. American firms attempting to enter this market or expand their lines, however, may expect fairly rapid duplication either by Belgian or other Com- mon Market firms, especially in the Netherlands. Directions for use of frozen foods or conven- ience foods should be in both the French and Flemish languages. The same holds true for rec- ipe booklets packed with such food items. HOME APPLIANCES Refrigerators and Freezers Although the design, quality, and utility of U.S. home appliances compare favorably with either Belgian products or products imported from other countries, the price of these appliances usually is a deterrent to increased sales. Furthermore, U.S. units customarily are larger than the European manufactured product and create problems in view of the limited space available in the Belgian home. The type of refrigerators customarily used in the United States are not now within the price 34 Courtesy Belgian Trade Rei'iew Modern air-conditioned textile mill at Bruges. range of the general public in Belgium. The price of an 11-cubic foot model is about $550; both its price and its size make it unattractive for all ex- cept the fairly wealthy householders. On the other hand, many Belgians are just acquiring their first refrigerators, usually 3- to 4-cubic foot models costing from $120 to $180. Models within this price range and size at present find greater accept- ance in Belgium, but demand for larger sizes may well go up as the general standard of living increases. The size of U.S. freezers, as well as price, pre- sents a problem although Belgian businessmen agree that the U.S. product surpasses its European counterpart in every other way. European models are said to be less effective than U.S. models and almost as expensive. Smaller U.S. freezers seem to have a good present potential particularly as many Belgians have gardens and want to preserve garden produce by more efficient methods. Ranges The most promising items in this group seem to be smaller and inexpensive U.S. gas stoves with simple controls, which are judged to be definitely superior to almost anything presently available in Belgium. Electric stoves, on the other hand, are priced mostly out of range of the Belgian buyer. Furthermore, the price of electricity in Belgium is much higher than that of cooking gas. Washers and Dryers There are French semiautomatic machines on the Belgian market which are doing reasonably well although they sell between $350 and $650 a unit. U.S. semiautomatic washers should, there- fore, also have a fairly good market. On the other hand, completely automatic washers are not yet within the range of the average Belgian consumer. Dishwashing machines are still very much a nov- elty, and the prices of U.S. products are again out of range. Smaller and cheaper U.S. units, how- ever, may find acceptance. It was suggested that such models might be produced under American licenses either in Belgium or in one of the neigh- boring Common Market countries. Although the damp climate makes the drying of clothing a difficult task, the use of dryers is very limited. Effective salesmanship could create a substantial market for this equipment. Interest in dehumidifiers could be aroused in the case of commercial and industrial enterprises, hospitals, banks, various archives, and possibly residential dwellings. Small Household Appliances In spite of considerably higher prices than those of competing European products, American design and quality are recognized in this field and have 35 resulted in some export sales. With additional promotion efforts this market was deemed to be- quite promising. The U.S. appliances should be adapted to 110/220, 50-cycle current, and heating elements should be adapted to a current of less than 6 amperes. CLOTHING AND TEXTILES There is still rather a narrow market for some types of women's clothes, but the market is grow- ing. U.S. women's ready-to-wear in the past has not sold well because of preference for French styling. Department store buyers, however, felt that with proper sales effort and in view of U.S. quality, popularly priced lines could move in greater quantities. This holds particularly good for U.S. women's sport, play, and casual clothing, which is considered to be comfortable and of good appearance. The results of the seventh annual "Le Salon Europeen du Pret-a-Porter Feminin" (Ladies' Ready-to-Wear Exhibition) in Brussels tend to strengthen this viewpoint. Attendance at this show has almost doubled each succeeding year of the last few years. In 1962 not only Belgian at- tendance but foreign attendance increased almost 100 percent over 1961. Baby's clothes, diapers, and articles for baby's needs, e.g., safety pins, blankets, toilet seats, and powder, have possibilities for development. An expanding market may be possible for men's medium-weight suits and coats, especially the so-called wrinkle-free suits. Wash-and-wear clothing has begun to appear on the Belgian mar- ket and has found good acceptance with possibili- ties for further expansion. Other interesting items are lingerie, nylon stockings, men's stretch socks, sport shirts, and slacks. In view of Belgium's climate, all kinds of rainwear offer possibilities. There is also some demand for shoes, sandals, and wearing apparel suitable for reexport to the Congo. Decorator fabrics for curtains, drapes, and upholstering are in demand. Fabrics, particularly of nylon, cotton, and rayon, for shirting, ladies underwear, dresses, blouses, and dressing gowns have a ready market potential. Netherlands competition in this field is formida- ble, especially since Netherlands goods can enter the Belgian market free of import duty. Further- more, novelty items are usually quickly duplicated by Dutch manufacturers. Nevertheless, U.S. clothing frequently is a sort of status symbol, which makes it salable despite higher prices which sometimes are due to extremely high retail markups. Belgian carpets are known throughout the world. Courtesy Belgian Embassy / ■ £ ii L iSHt! H n HE 2a »J3BM i/gm ^■^■m^"" V z Courtesy Official Belgian Tourist Bureau Venerable lacemaker demonstrates the ancient technique of lacemak- ing — an art now fast disappearing from the Belgian scene. 37 MACHINERY AND OTHER EQUIPMENT INDUSTRIAL Courtesy International Rank for Reconstruction and Development Excavator makes a 7-meter cut in one run in canal construction. Earthmoving, Materials-Handling, and Farming Equipment Heavy earthmoving and materials-handling equipment is still not produced on a large scale in Western Europe. It has been pointed out that the quality and serviceability of such European equip- ment is inferior to that originating in the United States. The market for this type of heavy equip- ment has been mentioned as one being susceptible to further expansion, but little hope is held for exports of U.S. lighter equipment in this category or farm machinery. Such equipment is locally produced or assembled and is also imported from neighboring countries. The U.S. product is said to be noncompetitive price-wise. Furthermore, in the heavy equipment class, servicing facilities set up by the U.S. exporter are said to be indispensable if sales are to increase. Machine Tools The commonly used types of machine tools either are produced locally or are being imported from neighboring countries, mainly because the price of similar U.S. tools is said to be too high. Only special types of machine tools manufactured solely in the United States and items protected by U.S. patents will continue to sell well in Belgium, trade sources seem to believe. Electrical Equipment A good market exists for U.S. electric special- ties, such as electric and pneumatic-electric control units for machinery, thermostats, and timing devices. The superior quality and performance of U.S. equipment has built a strong preference, despite costs which for some items were said to range considerably higher than the price of com- parable goods imported from other sources. If lower prices were possible, this market could be developed much more intensely. Electronic items were also considered to have a promising future. The widespread and rapid acceptance of television 38 Courtesy International Bank for Reconstruction and Development Bucket excavator digging out new canal. and industrial use of cathode tube equipment has created a demand for electron guns for cathode tubes. Refrigerating and freezing equipment. — Belgium appears to be a promising market for commercial refrigerating and freezing equipment. However, units should be adapted to the local electric current conditions. The development of supermarkets and good prospects for the expansion of frozen food sales necessitates greater freezer storage capacity, freezer display equipment, and quick freezing facilities for the processing of locally produced foods. The majority of grocery stores, confec- tionary shops and pastry shops, and a large num- ber of meat shops do not have refrigerating equip- ment or refrigerated showcases. With the American lead in the production of these items, a substantial mai'ket could be developed. Again, adequate servicing facilities for these items within Belgium are a must. Packaging Machinery Considerable interest was expressed by Belgian retailers, as well as manufacturers, for more attrac- tive packaging materials to be used in sales promo- tion and for strong, light packaging materials for the commercial shipment of goods. New and modern packaging machinery and materials, beer cases and other containers seem, therefore, to have possibilities in the Belgian market. Also, there may be opportunities to export more efficient food- processing machinery as the domestic consumer accepts more prepared and processed food. CHEMICALS AND ALLIED PRODUCTS Chemicals and Pharmaceuticals Since the Belgian and other Western European chemical industries are formidable competitors, standard chemicals from the United States will not have an easy market. Chemical specialties, on the other hand, possess good potentials. In the pharmaceutical field, a similar situation prevails. U.S. additives to make pharmaceutical compounds more effective and pharmaceuticals produced primarily in the United States should continue to find a market. Plastics and Rubber The ordinary types of plastics are now produced in abundance in Belgium. However, good possi- bilities are seen for special-purpose plastics, arti- ficial leather made of plastics, and plastic novelty items. Also, plastic kits for making model auto- mobiles, planes, space vehicles, trains, ships, and 39 Courtesy Belgian Trade Review Petrochemical plant. similar items are growing in popularity among hobbyists. Articles of novel design are, neverthe- less, subject to reproduction, usually within a year by European manufacturers. There is also a de- mand for special dyes and pigments for plastics and synthetic textiles. New types of synthetic rubber and new rubber products such as hygienic articles can readily be sold when properly marketed. BUILDING MATERIALS In view of the lively industrial and residential construction activity, U.S. building products which are unique or in which the United States is specialized will find a ready market. Examples of such items are new or specialty floor, wall, and ceiling coverings, insulating materials, and build- ing components and fittings. Although most of the builder's hardware sold in Belgium is pro- duced in Europe, especially in Germany, innova- tions of good quality and reasonable price have market possibilities. In this respect it may also be advisable for manufacturers of construction materials to investigate the market potentials of products not necessarily considered new in the United States but, as yet, not introduced to the Belgian building trades. House paint from the United States is already fairly well represented and, with the growth of the "do-it-yourself" movement, is expected by Belgian businessmen to have greater potentialities. Water heaters and area heating devices also are said to have good sales possibilities provided economy of use and efficient operation can be demonstrated. Some demand has been noted for modem bathtubs and bathroom fixtures. Building maintenance equipment, e.g., scaffold- ing, and modern painting and sanding equipment, of American design has attracted some building construction firms. Again, Belgian businessmen stress the import- ance of using both French and Flemish in the directions accompanying building materials, cov- erings, and hardware, either on the outer packag- ing or on separate leaflets. Sizes and quantities should be expressed in the metric system. In early 1960, the National Building Center was opened in Antwerp, financed by contributions of local members of the building and construction industries. Display space was provided to the subscribers free of charge for a 2-year period. The Center's plans call for expansion of its activi- ties and its program for exhibitions when display space is placed on a revenue-producing basis. Since membership in the Center includes a large number of Belgian architects and builders, it should offer a profitable point of contact for U.S. firms. 40 MISCELLANEOUS PRODUCTS Greeting cards, especially Christmas cards, are taking hold in the Belgian market and there also appears to be good prospects for novelty stationery items. Belgian importers have expressed interest in foil-covered, waterproof, and other fantasy- type labels. Packaged cake and other food mixes are just entering Belgium, especially via the super- market stores springing up throughout the coun- try. There are, however, few proper-size cooking pans on sale for these mixes since the great majority are the regular Belgian-size and, there- fore, too large. An enterprising exporter could develop a sizable market in these items. Toys and stuffed plush animals for small children, phono- graph records and recording tape, and garden sprayers also have sales potentials. Interest has been expressed in enameled ware, such as buckets and washbasins, and in portable radios and phonographs for export to the Congo. Trade opportunities exist for cosmetics, perfumes, toiletries, and all types of cosmetologists' supplies. Florist ribbons and specialty leathers and skins bear investigation. Printing and duplicating equipment and ma- terials used by printers, screen printers, advertis- ing agencies, and firms with their own printing services, forestry tools, e.g., chain saws and new types of forestry equipment, filtering equipment such as used in metalworking plants and paint factories, and precision measuring and optical equipment and gauges provide export possibilities. Interest is growing in the use of nonslip coat- ings and metal coverings on stairs, decks, catwalks, and similar passageways where moisture or other conditions create hazards to personnel. With only one large Belgian chemical firm man- ufacturing adhesives, domestic production is in- adequate and not in a position to supply the full range of adhesives required in the Belgian market. Although these products are now extensively im- ported from the United States (and from other Western European countries as well), the U.S. share of the market can be expanded. Tools and appliances for doing small jobs in the home find ready acceptance. Several lines of U.S. power handtools are already being manufactured in Belgium, and imports from European countries sell well. Supplementary equipment and acces- sories for "do-it-yourself" tools are believed to have a promising market. Machines and apparatus developed for use in education and teaching fields in the United States have been suggested as having special possibilities. Hot beverage dispensers appeal to the Belgian public and could be distributed widely. Construction work offers potential sales opportunities for material and equipment. Courtesy International Bank for Reconstruction and Development Courtesy of National Geographic Magazine © National Geographic Society Slag dumps of coal mines rear their heads over the western outskirts of Liege. The Meuse River in the foreground is a major artery of commerce. whtymytm-*-*'* lift K-* F -9k Jl * • ' * -- I -~V. '-*> Courtesy of National Geographic Magazine © Natio>ial Geographic Society Flax workers between Meuen and Ypres harvest crop for Belgian linen industry. 42 APPENDIX A Notes for Business Travelers GENERAL COUNTRY INFORMATION The Kingdom of Belgium has an area of 11,775 square miles, a frontier of 896 miles, and seaboard of 39 miles. It is bound on the north by the Neth- erlands, on the south by France, on the east by the Federal Republic of Germany and Luxembourg, and on the west by the North Sea. Belgium is a hereditary constitutional mon- archy. The political organization and practices of the country are democratic, and the Constitu- tion contains numerous safeguards of individual liberty. The Belgian Parliament consists of a Senate and Chamber of Representatives, whose Members are elected for 4 years. Parliament may be dissolved for new elections before the ex- piration of term. A part of the Senate is elected indirectly whereas some members of the Senate and all members of the Chamber are elected by direct vote. Voting is compulsory in Belgium. Most of the political interest and activity are centered in the Chamber. The present Belgian Government, formed in April 1961, is a coalition of the Social Christian and Socialist parties. In the Cabinet, the Social Christian Party has 11 portfolios while the So- cialists have 9. In the 212-member Chamber of Representatives, the Social Christians won 96 seats in the March 25, 1961, elections; the Social- ists, 84 ; the Liberals, 20 ; the Popular Union, 5 ; the Communists, 5; and the Independents, 2. In the Senate, the Social Christian Party gained 79 of the 175 seats ; the Socialist Party, 75 ; Liberal Party, 18 ; Popular Union, 2 ; Communist Party, 1. 1 Additional details on living costs and conditions may be found in Living Conditions in Belgium, World Trade Information Service, part 2, No. 61-13, March 1961. CLIMATIC CONDITIONS The climate is cool, temperate, and rainy, being slightly less cool and rainy near the coast. Brus- sels has a mean temperature of 50°F. (summer 65°, winter 37°). HEALTH CONDITIONS, MEDICAL FACILITIES Belgian public health standards are equivalent to those of the United States. Epidemic diseases are rare. Sinus infection, colds, and bronchitis are common in the winter. The Belgian climate is sometimes uncomfortable for persons suffering from sinus conditions and respiratory ailments. The principal causes of mortality are heart dis- ease, cancer, and tuberculosis. It is recommended that persons coining to Belgium be immunized against smallpox, typhoid, and paratyphoid. Belgian medical services are generally good ; a number of English-speaking physicians are avail- able in both Antwerp and Brussels. Medical facilities in Brussels are excellent though not so complete in all respects as in large American cities. Several hospitals and private clinics are equipped with modern diagnostic laboratories. Doctors charge from $6 to $10 for a house visit ; an office visit will range from $4 to $7. Hospital costs range from $5.50 to $7 per day in a ward with meals included, and from $8 to $15 for a private room. Surgeons' fees for an appen- dectomy vary from $130 to $160. Dentists' fees for a filling are about $6 and for an extraction, $5 ; the fee for an X-ray is $5. Medical supplies and medicines are plentiful but often expensive. A limited variety of imported patent medicines is available. 43 HOTEL ACCOMMODATIONS Housing is relatively expensive in Belgium. The country's hotel facilities, particularly during the height of the tourist season, are strained to capacity, and reservations should be made in ad- vance. In cities such as Brussels and Antwerp, rates in the best hotels for a single room with bath and continental breakfast range from $6 to $13, doubles from $9 to $19 ; with all meals furnished, singles range from $10 to $19, and doubles from $16 to $31. In average hotels, rates for a single room with bath and continental breakfast range from $5 to $7.50, and doubles from $7 to $11 ; with all meals furnished, singles range from $10 to $12, and doubles from $17 to $18. Single rooms with bath in average hotels range from $4.50 to $7 and doubles from $6.50 to $8. A tax of 6 percent is collected on room rent only, while a service charge of 15 percent is placed on the total. FOOD AND CLOTHING Generally speaking, the Belgians earn a good living and appreciate the good things in life. They like good food and eat well. Accordingly, one finds in Belgium a large number of restaurants and eating places, varying from deluxe establish- ments to snack bars. The better restaurants in Brussels are considerably more expensive than the average American restaurant, although portions served are appreciably larger. The food is good and the French cuisine is favored. There are, how- ever, many small restaurants providing good meals at prices comparable to similar places in American cities. The climate is somewhat similar to that of the northeastern United States, but with more rain- fall and fewer extremes in temperature. Winter- weight suits are worn practically the whole year. For a man, a heavy winter coat, a raincoat, and a lightweight topcoat are recommended; a warm fur coat is desirable for a woman. Wool dresses are worn throughout the year. Two-piece suits in worsted, gabardine, and flannel are indispensable. Sweaters, scarves, gloves, rain shoes, and raincoats are prerequisites for an ade- quate Brussels wardrobe, and crepe shoes are useful as they permit keeping feet dry without bothering with rubbers. Summer clothing in the American sense (cottons and light silks) is not necessary, although some such clothing should be brought along in anticipation of travel in the southern European countries. Inasmuch as many streets and sidewalks are of cobblestone, it is use- ful for women to have some sturdy walking shoes. Children need adequate woolen clothing. Their wardrobes should include long woolen socks, heavy shoes, woolen skirts and trousers, hats with earflaps, scarves, and gloves. Crepe or other thick-soled shoes are useful. Such clothing is available in Belgium, but is more expensive than in the United States. LOCAL TRANSPORTATION Local urban transportation has been developed to a high degree. Commuter trains, streetcars, and buses provide competent service. Fares are some- what lower than in comparable American cities. Taxicab rates are about the same as in the United States. Minimum taxi fare for one passenger is 10 francs (20 cents) with a trip of 2 kilometers (1% miles) costing 24 francs (48 cents). There is a mandatory tip of 10 francs on all fares from the minimum up to 50 francs ($1) ; over 50 francs, a tip of 20 to 25 percent is given. PASSPORTS AND VISAS Every traveler must be in possession of a valid passport. Belgium has no vaccination require- ments. Certain vaccinations, however, are recom- mended or required by the United States for Americans traveling abroad. Since the regula- tions governing these requirements may change with prevailing conditons, anyone contemplating a trip abroad should obtain the latest information from the Division of Foreign Quarantine, U.S. Public Health Service, Department of Health, Education, and Welfare, Washington 25, D.C., or from any local facility of the Service. A Belgian visa is not required for those U.S. visitors who stay for a period not exceeding 3 months but is required for students and other per- sons who intend to remain in Belgium more than 3 months. Regulations governing travel within the Benelux countries were relaxed July 1, 1960, under the provisions of a Benelux Convention abolish- ing the control over the movements of persons at the internal frontiers. Since then, foreigners entering any one of the three Benelux countries may move about freely in the three countries dur- ing a fixed period. 44 APPENDIX B Selected Economic Data Table 1. — Population by Age and Sex, December 31, 1960 Age Less than 5 years 5 up to 15 years.. 15 up to 25 years. 25 up to 45 years. 45 up to 65 years. 65 up to 75 years. 75 up to 85 years. 85 and over Total Men 384, 875 720, 938 563, 874 1, 227, 181 1, 137, 078 310, 436 134, 696 18, 744 4, 497, 822 Women 368, 294 698, 737 555, 876 1,207,019 1, 214, 803 406, 960 193, 435 35, 208 4, 680, 332 Source: Bulletin de Statistique, National Institute of Statistics. Total 753, 169 1, 419, 675 1, 119, 750 2, 434, 200 2, 351, 881 717,396 328, 131 53, 952 9, 178, 154 Table 2. — Economically Active Population by In- dustry Grouping, December 31, 1961 Industry Total active population 2 Agriculture Extractive industries ___ Manufacturing Building and constructing Transportation Commerce, banking insurance, and services Completely unemployed Number of persons' 3, 525, 000 250, 000 114,000 1,241,000 250, 000 242. 000 1,333,000 95, 000 1 Provisional data. 2 Includes unemployed; excludes Armed Forces. Source: National Bank Bulletin, Brussels. Percent of total 100.0 7.1 3.2 35.2 7 1 6.9 37.8 2.7 Table 3. — Belgium-Luxembourg: Imports of Select Commodity Croups, Total and From the United States, 1960-61 [1,000 francs] Commodity 1960 Total imports Imports from United States U.S. im- ports as percent of total 1961 Total imports Imports from United States U.S. im- ports as percent of total Total imports Edible fruits and fruit peel __ Grains Wheat __ Barley Corn Grain sorghums, dari, millet, and similar. Oleaginous fruits and seeds; fruits and seeds for planting; industrial and medicinal plants; straw and forage Animal and vegetable fats and oils and products thereof.. _ Vegetable and fruit preparations Food industry residues and wastes; prepared animal foods Tobacco _ Mineral fuels; petroleum products; bitumens and waxes Inorganic chemicals; compounds of precious metals, radioactive elements, and rare earths Organic chemicals __ _ Pharmaceutical products _ Artificial resins, plastics, and products _ Natural and synthetic rubber and products Paper materials, paper, and products Manmade textile and products _ Cotton and products _ Raw cotton. _. _ Iron and steel, and products _ Copper and products _ _ Machinery and industrial equipment Electric machinery and apparatus.. Automotive vehicles and tractors Aircraft and parts. Scientific, medical, and precision instruments and apparatus 197, 854, 439 2, 201, 964 5, 993, 340 1, 306, 445 940, 677 1, 629, 709 1, 483, 840 2, 189, 947 1, 822, 554 714, 595 2, 007, 830 1, 516, 467 19,881,272 1, 372, 620 2, 303, 709 1, 538, 003 2,620,511 2, 460, 337 6, 292, 466 2, 630, 789 5, 126, 872 3,126,814 8,600,017 9, 757, 376 15, 890, 243 6, 542, 793 14, 354, 887 2, 432, 336 1,649,174 19, 551, 269 203, 398 2, 533, 207 220, 193 195, 596 621, 100 1, 383, 506 800, 682 261, 608 273, 855 256, 438 465, 448 1, 179, 397 220, 122 666, 231 316, 776 399, 474 256, 826 347, 098 231, 678 1, 559, 728 1, 387, 774 312, 453 239, 956 2, 327, 655 520, 563 1, 273, 082 1,641,231 241, 568 9. 9 9.23 42.26 16. 85 20.79 38.11 93.23 36. 56 14.35 38.32 12.77 30.69 5.93 16.03 28.91 20.59 15.24 10.43 5.51 8.80 30.42 44.38 3.63 2.45 14.64 7.95 8.86 67.47 14.64 210, 951, 736 2, 518, 043 5, 731, 675 1, 716, 173 968, 891 1, 429, 195 1, 150, 321 2, 274, 248 1, 469, 079 784, 598 1, 890, 970 1,605,017 20, 590, 725 1, 446, 366 2, 394, 135 1,351.485 3, 010, 065 2, 522, 962 6, 927, 391 3, 394, 736 5, 052, 797 3,042,115 9, 627, 239 9, 576, 922 18, 354, 686 7,831,319 15, 405, 206 3, 123, 935 2,113,063 18, 740, 350 311, 772 2, 269, 060 476, 326 65, 042 655, 786 951, 492 536, 729 119,494 284, 954 187, 499 460, 378 1,055,971 257, 209 728, 414 242, 945 305, 620 320, 821 356, 816 364, 726 1, 421, 668 1, 292, 678 264, 702 101, 480 2, 873, 772 608, 273 1, 134, 099 996, 658 391,091 12.4 39.6 27.8 6.7 45.9 82.7 23.6 8.1 36.3 9.9 28.7 5.1 17.8 30.4 18.0 10.2 12.7 5.2 10.7 28.1 44.5 2.7 1.1 15.7 7.8 7.4 31.9 18.5 Source: Bulletin Mensuel du Commerce Eiterieur. 45 Table 4. — U.S. Exports to Belgium by Commodity Groups and Principal Commodities, 1958-61 [Quantity in units indicated: value in million dollars] Commodity Total exports, including reexports. Total exports, U.S. merchandise... Foodstuffs.. _ Grains and preparations. Barley 1,000 bushels.. Corn except seed -do Grain sorghum do Oats do Wheat do Fodders and feeds Oilcake and oilcake meal _ 1,000 s. tons.. Vegetables, fruits and preparations. Fresh fruits. million lbs.. Oranges and tangerines.. do Canned fruits do Vegetable products, inedible... Rubber and manufactures... Synthetic rubbers Soybeans, except canned 1,000 bushels.. Flaxseed - do Tobacco, unmanufactured 1,000 lbs._ Cigarettes. millions.. Textile fibers and manufactures Raw cotton, except llnters 1,000 bales.. Manmade fibers and yarns... 1,000 lbs.. Other textile materials, waste, and rags Fabrics, apparel, and related manufactures Fabrics - Wood and paper Paper, products and manufactures Nonmetallic minerals Coal bituminous 1,000 s. tons.. Petroleum products Lubricating oils 1,000 bbls.. Metals and manufactures Iron and steel mill products 1,000 s. tons.. Metal manufactures Nonferrous ores, scrap and metals.. _ Machinery and vehicles Machinery total Electric machinery and apparatus... Radio, television and electronic equipment __ Industrial machinery Power-generating machinery Construction, excavating and mining machinery Metalworking machinery and machine tools Textile, sewing and shoe machinery Miscellaneous industrial machinery _ Office machines and parts Agricultural machines and tractors Automobiles, parts and accessories Trucks, buses and chassis 1,000.. Passenger cars and chassis do Aircraft, parts and accessories Chemicals and related products ._ Coal tar products Medicinal and pharmaceutical preparations Chemical specialties. Plastics and resin materials Industrial chemicals. Alcohols Photographic and projection goods Scientific and professional instruments, apparatus, and supplies Phonographs, records, blanks and parts Quantity 1958 15, 823 9.595 12,092 6,895 3,387 23 3,199 279 14,411 1,030 93 1,373 2,280 ""682 "is 1959 10, 609 14, 655 22, 747 2,960 3,41b S3 3,486 20, 145 890 S4 1,151 ""720 """l2 1960 4,863 12, 852 21,043 1,968 4,081 51 5,202 707 18, 580 933 266 3,509 1,106 """783" "~27~ 1961 2,326 16, 863 16, 028 1,165 6,611 56.7 4,010 562 17, 257 1,127 131 3,051 905 916 "l4 Value 1958 331.6 325.6 72.3 53.5 16.6 12.1 13.9 3.9 5.3 1 I) 1.7 13.3 5.4 3.7 4.8 30.4 8.4 7.1 7.3 .9 6.6 4.7 21.4 12.2 1.7 3.4 4.1 1.0 4.4 2.1 39.6 22.5 11.1 7.2 11.8 3.4 3.1 2.3 71.4 38.0 8.7 2.0 24.1 3.1 4.1 3.1 4.4 9.0 3.0 1.7 24.2 2.9 16.4 8.6 55.7 5.8 10.1 17.3 12.3 18.8 13.1 2.7 1.2 3.5 1959 350.9 338.9 89.0 66.9 12.1 18.4 25.5 2.1 5.6 4.2 3.3 11.4 4.0 3.5 4.4 38.0 11.9 10.0 7.9 2.2 10.4 4.1 20.0 8.4 1.9 4.0 5.7 4.2 5.1 2.5 26.2 11.0 9.4 7.3 10.4 2.8 3.4 2.3 70.3 43.4 12.4 4.1 26.0 4.5 5.0 2.8 5.4 8.3 2.3 1.9 21.1 2.8 12.8 5.4 58.9 3.7 12.4 22.0 16.5 16.6 12.1 2.3 1.6 3.5 1960 435.8 423.3 75.2 54.7 5.2 16.3 23.5 1.5 6.8 3.9 3.1 10.2 2.8 2.4 4.3 42.4 13.0 10.1 11.8 2.2 9.2 4.3 50.1 34.5 4.5 4.6 6.5 4.8 8.1 3.2 28.9 10.2 9.9 8.3 20.3 6.0 3.9 8.3 109.2 60.0 10.6 2.9 43.6 8.6 8.4 5.4 6.7 14.4 2.5 2.5 27.1 2.5 16.6 21.7 68.0 8.4 12.5 24.4 17.8 19.0 10.5 3.4 1.4 3.4 1961 420.4 408.3 77.6 53.4 2.1 11.2 17.9 12.6 3.4 3.5 11.7 4.9 2.8 3.9 38.1 11.4 8.7 10.3 1.7 8.3 5.2 35.3 18.6 4.2 3.6 8.9 6.0 8.3 3.6 30.3 8.0 12.0 9.6 19.4 3.7 4.6 9.6 109.6 81.0 11.5 2.6 58.5 9.9 12.2 11.3 8.0 17.2 3.5 4.4 27.2 1.7 16.8 .333 66.5 8.4 15.1 24.7 15.7 15.5 7.3 3.7 2.0 3.1 Sources: U.S. Bureau of the Census. 46 Table 5. — Belgium-Luxembourg: Imports by Prin- cipal Country of Origin, 7960-67 Country of origin Total imports _ Germany, Fed. Rep. of Netherlands France Italy Total Common Market United States United Kingdom Republic of the Congo Sweden.. _ Switzerland - Australia Canada Iran __ Iraq Argentina Finland Union of South Africa All others 1960 Value, in million francs 197, 854 33, 701 29, 390 26, 898 4,701 91 690 19, 552 14, 583 13,214 5,976 3,577 2,754 2,394 2,190 2,377 2, 279 1,905 1,864 30, 499 Percent of total 100.0 17.0 14.9 13.6 2.4 47.9 7.4 6.7 3.0 1.8 1.4 1.2 1.1 1.2 1.2 1.0 0.9 15.4 1961 Value, in million francs 210, 952 37, 637 32, 299 31,051 5,784 106, 771 18,740 15,912 11,336 6,569 3,387 2,834 2,675 2,558 2,394 2,390 2,170 1,973 31, 243 Percent of total 100.0 17.8 15.3 14.7 2.7 60.6 S. 9 7.5 5.4 3.1 1.6 1.3 1.0 0.9 14.8 Table 6. — Belgium-Luxembourg: Balance of Trade and Percentage of Coverage, 7 950—60 Year Imports Exports Trade balance [favor- able (+) unfavor- able (-) Percentage of coverage 1950 97, 835 127,517 123, 114 121,514 127, 863 142, 202 163, 624 171,622 156, 447 172, 090 197, 854 210, 952 82, 825 132, 671 122, 703 113,444 115.690 138, 961 158, 124 159, 302 152,287 164, 757 188, 772 196, 220 -15,010 +5, 154 -411 -8,070 -12,173 -3.241 -5,500 -12,320 -4, 160 -7,333 -9,082 -14,732 84 65 1951 104 04 1952_ ... 99.66 1953.. 93 35 1954 90 47 1955 97.72 1956 96 63 1957 ._ 1958. . 92.82 97.34 1959 95 73 I960...- _- 1961 95.40 93.02 Source: Bulletin Mensuel dn Commerce Eiterieur. Source: Bulletin Mensuel du Commerce Eiterieur. Table 7. — Total Installment Sales by Commodity, Time Period, and Value During First Half of 7 962 Commodity Number of contracts by time period 3 to 12 months 13 to 24 months 25 months and over Total number of contracts Down payments (in 1,000 francs) Total credit accorded (in 1,000 francs) Trucks, delivery vans, autobuses, heavy transport equipment: New. - -- Used -- Agricultural tractors and equipment, livestock.. __ - Automobiles: New - - - Used.... -_ Motorcycles, scooters, moto-bikes, and bicycles _ Textiles, furs, clothing Books - --- Professional equipment, other than above (for commerce, crafts, industry, and lib- eral professions) Household goods, articles for personal use not elsewhere specified.. Services (travel, motor vehicle repairs) Total 6X0 262 1,276 5,499 2,893 8,500 321, 192 8,439 3,106 180, 152 2,844 534, 843 1,282 643 1,094 10, 558 11, 134 7,176 16, 175 10, 623 2,955 97, 767 1,886 161, 293 1,783 300 44£ 14, 478 1,287 137 205 2,307 1,981 22, 656 418 45, 998 3,745 1,205 2,816 30, 535 15,314 15,813 337, 572 21, 369 8,042 300, 575 5,148 742, 134 183, 190 30, 074 33, 435 1, 051, 268 198, 357 44, 339 48, 922 5,569 118,484 444, 346 9,904 2. 167, 888 474, 673 75, 557 88, 959 1,626,259 410, 678 122, 264 293, 511 45, 325 423, 031 1,688,975 40,289 5, 289, 521 Source: Bulletin de Statistique, National Institute of Statistics. 47 Table 8. — Commodity Composition of Total Credits Accorded by Financers, January-June 7962 [In percentages] Commodity Trucks, delivery vans, autobuses, heavy transport equipment: New Used Agricultural tractors and equipment, livestock Automobiles: New Used Motorcycles, scooters, moto-bikes, bicycles Textiles, furs, clothing Books -. Professional equipment other than above (for commerce, crafts, indus- try, and liberal professions) Household goods; articles for personal use not elsewhere specified Services (travel, motor vehicle repairs) Financed directly by seller Total _ 9.0 0.5 1.3 34.5 3.6 0.6 12.8 2.6 5.0 30.0 0.1 Financed by acceptance of the contract of sale Banks Financing or private organi- zations 12.6 2.4 3.1 41.3 10.1 1.1 0.2 14.1 14.5 0.3 100. 100. 5.8 1.5 18.2 9.5 4.6 3. 6 5.5 48.8 1.8 Total 9.0 1.4 1.7 30.7 7.8 2.3 5.5 0.9 8.0 31.9 0.8 100.0 100.0 Table 9. — Proportion of Credit Accorded by Fi- nancers by Commodity Group, January-June 7 962 [In percentages] Financed directly by seller Financed by acceptance of the contract of sale Commodity Banks Financing or private organi- zations Total Trucks, delivery vans, autobuses, heavy transport equipment: New 32.8 11.2 26.4 36.7 15.3 9.1 75.8 99.4 20.3 30.6 5.2 32.7 43.7 51.5 57.5 41.9 40.5 18.7 1.0 55.0 14.2 11.4 31.2 23.5 37.3 16.1 21.4 44.2 72.2 23.2 0.6 24.7 55.2 83.4 36.1 100 Used 100 Agricultural tractors and equipment, livestock 100 Automobiles: New 100 Used 100 Motorcycles, scooters, moto-bikes, bi- cycles.. 100 Textiles, furs, clothing 100 Books 100 Professional equipment other than above (for commerce, crafts, indus- try, and liberal professions) ..... 100 Household goods, articles for personal use not elsewhere specified 100 Services (travel, motor vehicle repairs). Total.. 100 100 Source: Bulletin de Stati3tique, National Institute of Statistics. Source: Bulletin de Statistique, National Institute of Statistics. Table 10. — Number of Registered Radios and Tele- vision Sets, 7 955-67 Year Household radio sets Automobile radios Portable radios Total Television sets 1955 1956 1,871,408 1, 947, 825 2, 007, 429 2,077,473 2, 108, 268 2, 140, 543 2,171,085 117, 893 134, 759 161, 439 177,061 194,014 202, 462 218,086 6,714 8,483 12, 654 20, 070 41,353 114,973 223, 679 1,996,015 2,091,067 2,181,522 2, 274, 604 2, 343, 635 2, 457, 978 2, 612, 850 (') 0) 1957 0) 1958 223, 168 1959 392, 355 1960 617, 834 1961 -. 820, 709 1 Not available. Source: Bulletin de Statistique, National Institute of Statistics. 48 APPENDIX C Selected Sources of Additional Information OFFICIAL BELGIAN PUBLICATIONS Annuaire Statistique (Statistical Annual). Annual publication of the National Institute of Statistics, Ministry of Economic Affairs, Brussels. Latest issue is for year 1961. Bulletin de Statistique (Statistical Bulletin). Issued monthly by the National Institute of Sta- tistics, Brussels. UEconomie Beige en 19 — (The Belgian Econ- omy). An annual report on the economy pub- lished by the General Direction of Studies and Documentation, Ministry of Economy Affairs, Brussels. Bulletin Mensuel de la Directien General des Etudes et de la Documentation (Monthly Bulle- tin). Issued by the General Direction of Studies and Documentation, Brussels. The December is- sue is a special number with a detailed review of the economy. Bulletin Mensuel du Commerce Exterieur de VUnion Economique B elgo-Luxembourgeoise (Monthly Bulletin of the Foreign Commerce of the Belgian-Luxembourg Economic Union) . Cu- mulative monthly foreign trade data prepared by the National Institute of Statistics, Brussels. Business Memo from Belgium. A monthly newsletter on highlights of industry, commerce and finance by the Belgian Industrial Informa- tion Service, Belgian Consulate General, New York. Belgium — Information. Monthly economic bulletin from the Belgian Foreign Trade Office, Brussels. OTHER GENERAL SOURCES Bulletin d 'Information et de Documentation (Monthly Bulletin of the National Bank of Bel- gium). Contains factual economic articles and detailed statistical tables. Prepared by the De- partment of Studies and Documentation of the National Bank, Brussels. Annual Report. General economic review and review of the activities of the Belgian Federation of Industries, Brussels. Industrie (Industry). Monthly periodical of the Belgian Federation of Industries, Brussels, covering economic, industrial, and a wide range of other subjects, and tending to be scholarly in its approach. Recherches Economique de Louvain (Economic Researches of Louvain) . Review published eight times a year by the Institute for Economic, Social and Political Research, Catholic University of Louvain, Louvain. Belgian Trade Review. Published monthly by the Belgian Chamber of Commerce in the United States, New York. Commerce. Review of the American Chamber of Commerce in Belgium, Brussels. U.S. DEPARTMENT OF COMMERCE PUBLICATIONS 1 Directory of Foreign Advertising Agencies and Marketing Research, Organizations. Lists adver- tising agencies and marketing research organiza- tions. 1959. 135 pages. 45 cents. Sources of Credit Information on Foreign Firms. A guide to the principal sources of for- eign credit information in the United States and abroad. 1958. 84 pages. 30 cents. 1 Available from U.S. Department of Commerce Field Offices or from the Superintendent of Documents, U.S. Government Print- ing Office, Washington 25, D.C. Enclose check or money order payable to the Superintendent of Documents. 49 Selling Around the World — How Commerce Helps. A description of Commerce services to the international business community. 1963. 26 pp. Free. What You Should Know About EXPORTING. A How-To-Get-Started Handbook designed to be a basic reference for the American businessman interested in opening profitable overseas markets for his products. 1962. 38 pages. 25 cents. Trade Lists. Most of these lists furnish, for a particular country, names and addresses of foreign firms (of importers and dealers or of manu- facturers and exporters, as the case may be) , clas- sified by commodity; others are listings of profes- sional groups, institutions, and service organizations by country. The lists include names and addresses of the principal firms engaging in a specified commodity trade or names and addresses of service or professional groups, etc., with infor- mation on the relative size, type of operation, products handled, and sales territory. They also provide a summary of general conditions govern- ing trade in specified products. For some of the smaller countries simple listings of businessmen, often with indication of the commodities handled, are furnished. $1 per list (individual-commodity list, professional group list, businessmen's list, etc.) per country. Basic Data on the Economy of Belgium. "World Trade Information Service, part 1, No. 61-64. 12 pp. August 1961. 15 cents. Economic Developments in Belgium, 1961. World Trade Information Service, part 1, No. 62- 21. 8 pp. May 1962. 15 cents. Establishing a Business in Belgium. World Trade Information Service, part 1, No. 60-39. 11 pp. August 1960. 10 cents. Im,port Tariff System of Belgium, Netherlands, and Luxembourg. Overseas Business Report, OBR-63-25. 2 pp. January 1963. 15 cents. Licensing and Exchange Controls, Belgium- Luxembourg. World Trade Information Service, part 2, No. 61-89. 4 pp. November 1961. 10 cents. Living Conditions in Belgium. World Trade Information Service, part 2, No. 61-13. 7 pp. March 1961. 10 cents. Marking and Labeling Requirements of Bel- gium. World Trade Information Service, part 2, No. 62-60. 2 pp. October 1962. 10 cents. Pharmaceutical Regulations of Belgium. World Trade Information Service, part 2, No. 61-74. 3 pp. November 1961. 10 cents. Preparing Shipments to Belgium-Luxembourg . Part 2, No. 60-29. 6 pp. July 1960. 10 cents. 50 U.S. GOVERNMENT PRINTING OFFICE: 1963 O — 675464 PENN STATE UNIVERSITY LIBRARIES A0DDD712AAL III DM