U.S. DEPARTMENT OF STATE
1994 COUNTRY REPORTS ON ECONOMIC POLICY AND TRADE PRACTICES
BUREAU OF ECONOMIC AND BUSINESS AFFAIRS
RELEASED MARCH 1995 


                  CONTENTS

FORWARD
LETTER OF TRANSMITTAL
INTRODUCTION
TEXT OF SECTION 2202 OF THE OMNIBUS TRADE AND COMPETITIVENESS ACT OF 1988
NOTES ON PREPARATION OF THE REPORTS
SOME FREQUENTLY USED ACRONYMS


                         COUNTRY REPORTS*

AFRICA:

Angola
Gabon
Ghana
Kenya
Nigeria
South Africa

EAST ASIA AND THE PACIFIC:

Australia
China
Hong Kong*
Indonesia
Japan
Korea, Republic of
Malaysia
New Zealand
Philippines
Singapore
Taiwan*
Thailand

EUROPE AND NORTH AMERICA:

The European Union
Armenia
Austria
Azerbaijan
Belarus
Belgium
Bosnia and Hercegovina
Bulgaria
Canada
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Georgia
Germany
Greece
Hungary
Ireland
Italy
Kazakhstan
The Kyrgyz Republic
Latvia
Lithuania
Macedonia /1
Moldova
The Netherlands
Norway
Poland
Portugal
Romania
Russia
Serbia and Montenegro /2
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Tajikistan
Turkey
Turkmenistan
Ukraine
United Kingdom
Uzbekistan

LATIN AMERICA:

Argentina
Bahamas
Barbados
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Trinidad and Tobago
Uruguay
Venezuela

NEAR EAST AND NORTH AFRICA:

Algeria
Bahrain
Egypt
Iran
Iraq
Israel
Jordan
Kuwait
Morocco
Oman
Saudi Arabia
Syria
Tunisia
United Arab Emirates

SOUTH ASIA:

Bangladesh
India
Pakistan


U.S. DEPARTMENT OF STATE
1994 COUNTRY REPORTS ON ECONOMIC POLICY AND TRADE PRACTICES
BUREAU OF ECONOMIC AND BUSINESS AFFAIRS



                           COUNTRY REPORTS ON ECONOMIC POLICY
                                 AND TRADE PRACTICES

                                 REPORT SUBMITTED TO THE
                               COMMITTEE ON INTERNATIONAL RELATIONS
                               COMMITTEE ON WAYS AND MEANS
                                          OF THE
                               U.S. HOUSE OF REPRESENTATIVES
                                          AND THE
                          COMMITTEE ON FOREIGN RELATIONS,
                                   COMMITTEE ON FINANCE
                                         OF THE
                                       U.S. SENATE
                                         BY THE 
                                    DEPARTMENT OF STATE

IN ACCORDANCE WITH SECTION 2202 OF THE OMNIBUS TRADE AND COMPETITIVENESS ACT OF 1988

                                   RELEASED MARCH 1995

Printed for the use of the Committee on Foreign Affairs and Ways and Means of the House of Representatives, and Foreign Relations and Finance of the U.S. Senate.




                             FOREWORD


    The reports on individual country economic policy and trade
practices contained herein were prepared by the Department of
State in accordance with section 2202 of the Omnibus Trade and
Competitiveness Act of 1988 (P.L. 100-418).

    Modeled on the State Department's annual reports on country
human rights practices, the reports are intended to provide a
single, comprehensive and comparative analysis of the economic
policies and trade practices of each country with which the
United States has an economic or trade relationship.  Because
of the increasing importance of, and interest in, trade and
economic issues, these reports are prepared to assist members
in considering legislation in the areas of trade and economic
policy.



                         JESSE HELMS,
              Chairman, Committee on Foreign Relations.

                         BOB PACKWOOD,
              Chairman, Committee on Finance.

                         BENJAMIN A GILMAN
              Chairman, Committee on International Affairs.

                         BILL ARCHER
              Chairman, Committee on Ways and Means.


(###)




                              LETTER OF TRANSMITTAL

                                             Department of State
                                    Washington, DC, January 31, 1995

Hon. JESSE HELMS
Chairman, Committee on Foreign Relations,

Hon. BOB PACKWOOD
Chairman, Committee on Finance,

Hon. ALBERT GORE, JR.
President, U.S. Senate.

Hon. NEWT GINGRICH
Speaker, House of Representatives.

Hon. BENJAMIN A GILMAN
Chairman, Committee on International Affairs,

Hon. BILL ARCHER
Chairman, Committee on Ways and Means,


    Dear Sirs:  Section 2202 of the Omnibus Trade and
Competitiveness Act of 1988 requires the Department of State to
provide to the appropriate Committees of Congress a detailed
report regarding the economic policy and trade practices of
each country with which the U.S. has an economic or trade
relationship.  In this regard, I am pleased to provide the
enclosed report.

                                          Sincerely,



                                          Wendy R. Sherman,
                                          Assistant Secretary
                                          Legislative Affairs


Enclosure


(###)




                COUNTRY REPORTS ON ECONOMIC POLICY
                       AND TRADE PRACTICES

                           INTRODUCTION

    The Department of State is submitting to the Congress its
Country Reports on Economic Policy and Trade Practices in
compliance with Section 2202 of the Omnibus Trade and
Competitiveness Act of 1988.  As the legislation requires, we
have prepared a detailed report on the economic policy and
trade practices of each country with which the United States
has an economic or trade relationship.  We also have included
reports on other countries that have relatively small economic
and trade relationships with the United States, which may
nonetheless interest readers.  This is the Department of
State's seventh annual report.  The document has grown in
coverage and scope since the series began in January 1988.  It
now includes over 100 countries.


    Each report contains nine sections.

o   Key Economic Indicators:  Each report begins with a table
    showing data for key economic indicators in the national
    income, monetary, and trade accounts.

o   General Policy Framework:  This first narrative section
    gives an overview of macroeconomic trends.

o   Exchange Rate Policies:  The second section describes
    exchange rate policies and their impact on the price
    competitiveness of US exports.

o   Structural Policies:  The third section examines structural
    policies, highlighting changes that may affect US exports
    to that country.

o   Debt Management Policies:  The fourth section describes
    debt management policies and their implications for trade
    with the United States.

o   Significant Barriers to US Exports and Investment:  The
    fifth section examines significant barriers, formal and
    informal, to US exports and investment.

o   Export Subsidies Policies:  The sixth section focuses on
    government actions, policies, and practices that support
    exports from that country, including exports by small
    businesses.

o   Protection of US Intellectual Property:  The seventh
    section discusses the country's laws and practices with
    respect to protection of intellectual property rights.

o   Worker Rights:  The final section has three parts.

    --  The first (subsections a through e) outlines the
        country's laws and practices with respect to
        internationally recognized worker rights.

    --  The second (subsection f) highlights conditions 
        of worker rights in goods-producing sectors where US 
        capital is invested.

    --  Finally, a table cites the extent of such investment by 
        sector where information is available.

    The country reports are based on information supplied by
U.S. Embassies, which is analyzed and reviewed by the
Department of State in consultation with other U.S. Government
agencies.  The reports are intended to serve as general guides
to economic conditions in specific countries.  We have worked
to standardize the reports, but there are unavoidable
differences reflecting large variations in data availability. 
In some countries, the United States has no formal
representation.  In others, access to reliable data is limited,
particularly in countries making transitions to market
economies.  Nonetheless, each report incorporates the best
information currently available.



                        Daniel K. Tarullo
                   Assistant Secretary of State
                for Economic and Business Affairs


(###)



            TEXT OF SECTION 2202 OF THE OMNIBUS TRADE
                 AND COMPETITIVENESS ACT OF 1988

    "The Secretary of State shall, not later than January 31 of
    each year, prepare and transmit to the Committee on
    Foreign Affairs and the Committee on Ways and Means of the
    House of Representatives, to the Committee on Foreign
    Relations and the Committee on Finance of the Senate, and
    to other appropriate committees of the Congress, a
    detailed report regarding the economic policy and trade
    practices of each country with which the United States has
    an economic or trade relationship.  The Secretary may
    direct the appropriate officers of the Department of State
    who are serving overseas, in consultation with appropriate
    officers or employees of other departments and agencies of
    the United States, including the Department of Agriculture
    and the Department of Commerce, to coordinate the
    preparation of such information in a country as is
    necessary to prepare the report under this section.  The
    report shall identify and describe, with respect to each
    country:

    1. The macroeconomic policies of the country and their
impact on the overall growth in demand for United States
exports;

    2. The impact of macroeconomic and other policies on the
exchange rate of the country and the resulting impact on price
competitiveness of United States exports;

    3. Any change in structural policies [including tax
incentives, regulation governing financial institutions,
production standards, and patterns of industrial ownership]
that may affect the country's growth rate and its demand for
United States exports;

    4. The management of the country's external debt and its
implications for trade with the United States;

5. Acts, policies, and practices that constitute
significant trade barriers to United States exports or foreign
direct investment in that country by United States persons, as
identified under section 181(a)(1) of the Trade Act of 1974 (19
U.S.C. 2241(a)(1));

    6. Acts, policies, and practices that provide direct or
indirect government support for exports from that country,
including exports by small businesses;

    7. The extent to which the country's laws and enforcement
of those laws afford adequate protection to United States
intellectual property, including patents, trademarks,
copyrights, and mask works; and 

    8. The country's laws, enforcement of those laws, and
practices with respect to internationally recognized worker
rights (as defined in section 502(a)(4) of the Trade Act of
1974), the conditions of worker rights in any sector which
produces goods in which United States capital is invested, and
the extent of such investment."

(###)



                 Notes on Preparation of the Reports

Subsections a. through e. of the Worker Rights section (section
8) are preliminary abridged versions of section 6 in the
Country Reports on Human Rights Practices for 1994, submitted
to the Committees on Foreign Affairs of the House of
Representatives and on Foreign Relations of the U.S. Senate in
January, 1995.  For a comprehensive discussion of worker rights
in each country please refer to that report.

Subsection f. of the Worker Rights section highlights
conditions of worker rights in goods-producing sectors where
U.S. capital is invested.  A table cites the extent of such
investment by sector where information is available.  The
Bureau of Economic Analysis of the U.S. Department of Commerce
has supplied information on the U.S. direct investment position
at the end of 1993 for all countries for which foreign direct
investment has been reported to it.  Readers should note that
"U.S. Direct Position Abroad" is defined as "the net book value
of U.S. parent companies' equity in, and net outstanding loans
to, their foreign affiliates" (foreign business enterprises
owned 10 percent or more by U.S. persons or companies).  Where
a figure is negative, the U.S. parent owes money to the
affiliate.  The table does not necessarily indicate total
assets held in each country.  In some instances, the narrative
refers to investments for which figures may not appear in the
table.

(###)



                          Some Frequently-Used Acronyms

ADB - Asian Development Bank
BDV - Brussels Definition of Value
BIS - Bank for International Settlements 
CACM - Central American Common Market 
CARICOM - Caribbean Common Market
CAP - Common Agricultural Policy
CCC - Commodity Credit Corporation (Department of Agriculture)
COMECOM - Council for Mutual Economic Assistance
EBRD - European Bank for Reconstruction and Development
EFTA - European Free Trade Association 
EMS - European Monetary System
ERM - Exchange Rate Mechanism
ESAF - Enhanced Structural Adjustment Facility
EU - European Union
EXIMBANK -  U.S. Export-Import Bank
FOREX - Foreign Exchange
FSU - Former Soviet Union
GATT - General Agreement on Tariffs and Trade
GDP - Gross Domestic Product
GNP - Gross National Product
GSP - Generalized System of Preferences
IBRD - International Bank for Reconstruction
     and Development (World Bank)
ILO - International Labor Organization (of the U.N.)
IMF - International Monetary Fund
IDB - Inter-American Development Bank
IPR - Intellectual Property Rights
LIBOR - London Interbank Offer Rate
MFN - Most Favoured Nation
NNI -  Net National Income
OECD - Organization for Economic Cooperation and Development
OPIC - U.S. Overseas Private Investment Corporation
PTT - Posts, Telegraph and Telephone
SAP - Structural Adjustment Program (of the IMF/World Bank)
SDR - Special Drawing Rights (of the IMF)
STF - Structural Transformation Facility
UR - Uruguay Round of trade negotiations in the GATT
USD - U.S. dollar
VAT - Value-added tax
WIPO - World Intellectual Property Organization
WTO - World Trade Organization


(###)



Index of "Economic and Business Issues"|| Index of Electronic Research Collections
ERC Reference Desk || Alphabetic Index || Sitemap || ERC Homepage
Last modified: Jun. 14, 1999
Designed by: Lin Dou