Economic Data
(1998 in U.S. $)
Total GDP: Purchasing power parity = $143 billion
GDP Growth: 3%
Per Capita GDP: $13,400
Inflation: 3.9%
Unemployment Rate: 10%
Trade Balance: $15.3 billion deficit.
Exports: $12.4 billion: manufactured goods, foodstuffs, fuels. Export trading partners: EU (56%, predominantly Germany, followed by Italy, UK and France), and the U.S. (16%).
Imports: $27.7 billion: manufactured goods, foodstuffs, fuels and chemicals. Import trading partners: EU (61%, Italy and Germany, followed by France, UK and the Netherlands) and the U.S. (11%).
Best Prospects for Export: Computers and peripherals, medical equipment, building products, telecommunications services, commercial and residential air conditioning and refrigeration, franchising, residential natural gas equipment, food processing and packaging equipment, defense products, nursery products, frozen fish and seafood products and wood products
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Exporting to Greece has been quite a catch for The Town Dock in Narragansett. For more than 15 years, the company has been exporting local seafood from the docks of Point Judith to the island, shipping nearly 500,000 pounds annually.
Town Dock President Noah Clark said the company began exporting to Greece at the request of businesses from the country, but since then has increased its shipment there with the help of the Rhode Island Seafood Council, and national and international trade shows.
”Out of the blue we were contacted by some people from Greece,” he said. “But we have continued to do business there with the help of local organizations.”
Town Dock, which opened in 1980, has 60 full-time employees, and sometimes as many as 120 workers if the catch happens to be particularly productive.
Clark said when the company first started exporting to Greece, squid was the most popular item and has remained popular during the 15 years the company has been doing business there.
Calamari is a big product for Rhode Island,” he said. “The businesses in Greece look for a decent price, and for different species. When we can be competitive, we do quite well there.”
Over the years, the amount of export to the company has varied, Clark said, because of price, but on an average the company ships between 400,000 and 500,000 pounds a year.
“What we ship there totally depends on the World Market,” he said. “Greece is a country that really looks for a good price, and is extremely price conscious. If prices are high on fishing vessels here, it may not be competitive enough for us to sell for a low price in Greece.”
But Clark said exporting to Greece has also been one of the company’s easiest routes.
”We generally haven’t had that much trouble there,” he said. “We know the customer and the customer knows us, so it’s never been so difficult that we couldn’t get through.”
But like other seafood products Clark said, the amount of squid caught by local fishers could soon be regulated.
”Right now the government is in the process of putting a quota on squid,” he said. “Calamari is one of the last to be regulated, but just like when many of the other species were regulated, all fisheries will be affected.”
Still Clark expects that the company’s exports to Greece will not be affected by the changes.
”It’s a lower priced item, that they enjoy,” he said. “And it’s only a small percentage of our overall sales.”
Greece (Hellenic Republic)
Location: Southern Europe between Albania and Turkey, bordering the Aegean Sea, the Ionian Sea and the Mediterranean Sea. Greece is located at the crossroads of Europe, Asia and Africa.
Geographic Area: 131,940 sq. km, slightly smaller than Alabama.
Climate: Temperate, with mild, wet winters and hot, dry summers.
Main Cities: Athens (capital), Thessaloniki, Piraeus, Patras, Larissa, and Iraklion.
Population: 11 million
Languages: Greek (official), English, French.
Time Zone: Eastern Standard Time + seven hours.
Workweek: Private sector offices are open from 8:00 a.m. to 5:00 p.m., with a one-hour lunch. Government offices open from 7:30 a.m. to 3:00 p.m., and from 7:00 a.m. to 2:30 p.m. in the summer. Manufacturing locations operate from 7:00 a.m. to 3:00. Banks open from 8:30 a.m. to 2:00 p.m. Offices are open Monday to Friday.
Type of Government: Parliamentary republic.
Head of State: President Konstandinos (Kostis) Stephanopoulos (since 1995), Prime Minister Konstandinos Simitis. The President is elected by Parliament for a five-year term. The President appoints the Prime Minister and the Cabinet.
Currency: 1 drachma (Dr) = 100 lepta
Exchange Rate: $1U.S. = 279 drachma
Economic and Political Conditions: Already a member of the EU, Greece has implemented an austerity program designed to meet requirements for entry into the Economic and Monetary Union (EMU) by the target date of January 1, 2001. Inflation has been reduced to 4.7 percent, public and private debt levels as a percent of GDP have been reduced, and investor and consumer confidence are strong. Greece revalued the drachma by 3.5 percent on January 15 in preparation for entry into the Euro zone.
The U.S. and Greece have strong bi-lateral relations, strengthened by common democratic traditions and a large Greek-American community in the U.S. Several current political issues might affect the business climate: 1) negative attitudes toward American involvement in NATO military action in the Balkans, 2) the need to reduce the state sector without damaging the economy, 3) tax evasion and tax reform, 4) labor market reform, 5) continuing operations of terrorist groups, and 6) tensions with Turkey.
Since the devastating earthquake in Turkey last year, when Greece offered significant assistance, Greek-Turkish relations have warmed. The foreign ministers of the two countries announced direct talks to reduce military tensions in the Aegean on January 20, during Greek Foreign Minister George Papandreou’s visit to Turkey. The visit was the first in forty years.
Greece will host the Olympic Summer Games in 2004. The country will undertake numerous projects, and will spend at least $230 million to prepare for the Games. Billions of dollars will be spent on infrastructure improvements. Major sub-contracting or partnership opportunities exist for American companies. The Commercial Service and the American-Hellenic Chamber of Commerce sponsored an Olympics Forum for U.S. firms in June 1999. They will stage additional forums in the future.
Tarriffs, Trade,Taxes, Trademarks
Trade Regulations and Tariffs: Greece adheres to trade barriers mandated by the EU and the Greek government, and is bound by their membership in WTO. It enforces European Union common external tariffs, common agricultural policy, and joint transportation policy. Import duties on manufactured products from non-EU members range from five to seven percent. Commodity imports are most generally free, requiring no import license. The EU will eliminate tariffs on all information technology products by 2000. ISO 9000 standards are accepted by many local firms, and are required for many government procurement contracts.
Taxation: Corporate taxes are fixed at 35 percent, although taxable profits may be reduced by certain incentives, such as location. Permanent residents in Greece must pay personal income taxes based on their worldwide income, subject to bilateral tax treaties. A bi-lateral tax treaty between Greece and the U.S. has been in effect since 1953.
Foreign Investment: Government policy encourages private foreign investment, although non-EU members have less advantageous treatment than Greek or EU investors in certain sectors.
Free Trade Zones: Greece has three free-trade zones, located at the ports of Piraeus, Thessaloniki, and Heraklion. Foreign goods and documents may enter these ports without customs duties, stamp taxes, or other taxes. The goods remain free if transshipped or re-exported. Transit goods may be warehoused, repacked, sorted and relabeled in the FTZs free of bond. Unlimited storage time is allowed, if warehouse fees are paid every six months.
Trade Finance: Ex-Im Bank and OPIC are not highly active in Greece. OPIC and the Greek Export Credit Insurance Organization have created a joint fund for risk insurance. Greek, U.S. and other banks provide most of the financing, readily available to qualified applicants, but at an 11.75 to a 19 percent rate. Greek commercial banks have correspondent relations with the major American banks. Capital market activity is low, because of the dominance of small, family-owned companies and investor preference for real estate and government bonds.
Marketing and Selling Factors: Success in the Greek market is more likely if an exporter engages an agent or joint venture partner with experience and good sales network. The agent or partner should be able to offer after-sales support and spare parts. Eighty percent of imports are directed through Greek sales agents or distributors. Agency agreements do not have to be exclusive and can be signed for any amount of time. Distributors require exclusive rights for certain regions or for the country as a whole. Retail and wholesale trading activities are mainly operated by small, family-owned businesses that offer a narrow range of goods. Orders are usually small, so Greek importers ask for special pricing if the U.S. exporter requires large orders.
Patents/Trademarks/Copyrights: Foreign and domestic firms have equal patent and trademark legal protection. Greece is party to the Paris Convention for the Protection of Intellectual Property, the European Patent Convention, the World Industrial Property Organization, and the Berne Copyright Convention.
Key Contacts – Greece
John H. Chafee Center for International Business and World Trade Center, Bryant College
Raymond W. Fogarty, Director, Edward Barr, World Trade Center Manager
Telephone: (401) 232-6407 or (401) 232-6408
Fax:(401) 232-6416, E-Mail:postoffice@itdn.net., Website: http://www.rieac.org
Rhode Island Economic Development Corporation (RIEDC)
Maureen Mezei, International Trade Director
Telephone: 222-2601, ext. 123 E-Mail: mmezei@riedc.com
U.S. Export Assistance Center, Department of Commerce
Keith M. Yatsushashi, International Trade Specialist
Telephone: (401) 528-5104 E-Mail: kyatsuha@mail.doc.gov
U. S. Small Business Administration
Marilyn Bogue, International Trade Officer
Telephone: 528-4585 E-Mail: marilyn.bogue@sba.gov
The Greek Embassy, Office of the Commercial Counselor
Mr. Leonidas Ananiades
2211 Massachusetts Ave NW, Washington, DC 20008
Telephone: (202) 332-2844 Fax: (202) 328-3105
Greek Consulate General, Commercial Counselor
Mr. John Papadimitriou
150 East 58th Street, New York, NY 10022
Telephone: (212) 751-2404 Fax: (212) 593-2278
Greek Consulate General
Mr. George Chatzimichelakis, Consul General
86 Beacon Street, Boston, MA 02108-3304
Telephone: (617) 523-0100 Fax: (617) 523-0511
U.S. Embassy in Greece
91 Vasilisssis Sofias Avenue , GR-101 Athens, Greece
Telephone: 01/721-2951 Fax: 01/645-6282
American-Hellenic Chamber of Commerce
16 Kanari Street, GR-106 74 Athens, Greece
Telephone: 01/362-3231 Fax: 01/361-0170
Country Profile
Compiled by Providence Business News,
in collaboration with Bryant College Export Assistance Center.
