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Portugal 2019

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Portugal 2019 Portugal 2019 1 Table of Contents Doing Business in Portugal _____________________________________________ 5 Market Overview ______________________________________________________________ 5 Market Challenges ____________________________________________________________ 5 Market Opportunities ___________________________________________________________ 6 Market Entry Strategy __________________________________________________________ 6 Political Environment __________________________________________________ 7 Political Environment __________________________________ Error! Bookmark not defined. Selling US Products & Services __________________________________________ 8 Using an Agent to Sell US Products and Services ____________________________________ 8 Establishing an Office __________________________________________________________ 9 Franchising _________________________________________________________________ 10 Direct Marketing _____________________________________________________________ 10 Joint Ventures/Licensing _______________________________________________________ 12 Selling to the Government _____________________________________________________ 12 Distribution & Sales Channels __________________________________________________ 14 Express Delivery _____________________________________________________________ 14 Selling Factors & Techniques ___________________________________________________ 14 eCommerce ________________________________________________________________ 15 Trade Promotion & Advertising __________________________________________________ 16 Pricing _____________________________________________________________________ 19 Sales Service/Customer Support ________________________________________________ 19 Protecting Intellectual Property __________________________________________________ 20 Due Diligence _______________________________________________________________ 22 Local Professional Services ____________________________________________________ 23 Principle Business Associations _________________________________________________ 23 Limitations on Selling US Products and Services ____________________________________ 23 Web Resources _____________________________________________________________ 23 Leading Sectors for US Exports & Investments ____________________________ 24 Agricultural Sector____________________________________________________________ 24 Education & Training __________________________________________________________ 32 Design and Construction _______________________________________________________ 33 Information and Communications Technology ______________________________________ 34 Energy _____________________________________________________________________ 36 2 Aerospace, Defense and Security _________________________________________________ 37 Agricultural Equipment ________________________________________________________ 38 Customs, Regulations & Standards ______________________________________ 40 Trade Barriers _______________________________________________________________ 40 Import Tariff ________________________________________________________________ 40 Import Requirements & Documentation ___________________________________________ 40 Import Documentation _________________________________________________________ 40 Labeling/Marking Requirements _________________________________________________ 44 U.S. Export Controls __________________________________________________________ 57 Temporary Entry _____________________________________________________________ 58 Prohibited & Restricted Imports _________________________________________________ 58 Customs Regulations _________________________________________________________ 59 Standards for Trade __________________________________________________________ 59 Contact Information ___________________________________________________________ 63 Trade Agreements ___________________________________________________________ 64 Licensing Requirements for Professional Services ___________________________________ 64 Web Resources _____________________________________________________________ 65 Investment Climate Statement __________________________________________ 66 Executive Summary __________________________________________________________ 66 Openness To, and Restrictions Upon, Foreign Investment ____________________________ 67 Bilateral Investment and Taxation Treaties _________________________________________ 71 Legal Regime _______________________________________________________________ 71 Industrial Policies ____________________________________________________________ 75 Protection of Property Rights ___________________________________________________ 77 Financial Sector _____________________________________________________________ 78 State-Owned Enterprises ______________________________________________________ 80 Responsible Business Conduct _________________________________________________ 81 Corruption __________________________________________________________________ 82 Political and Security Environment _______________________________________________ 83 Labor Policies and Practices ____________________________________________________ 84 OPIC and Other Investment Insurance Programs ___________________________________ 85 Foreign Direct Investment and Foreign Portfolio Investment Statistics ____________________ 85 Trade & Project Financing _____________________________________________ 88 Banking Systems ____________________________________________________________ 89 Foreign Exchange Controls ____________________________________________________ 89 3 US Banks & Local Correspondent Banks __________________________________________ 90 Project Financing ____________________________________________________________ 91 Multilateral Development Banks _________________________________________________ 93 Financing Web Resources _____________________________________________________ 94 Business Travel ______________________________________________________ 94 Business Customs ___________________________________________________________ 94 Travel Advisory ______________________________________________________________ 95 Visa Requirements ___________________________________________________________ 95 Currency ___________________________________________________________________ 95 Telecommunications/Electronics ________________________________________________ 95 Transportation _______________________________________________________________ 96 Language __________________________________________________________________ 96 Health _____________________________________________________________________ 96 Local Time, Business Hours and Holidays _________________________________________ 96 Temporary Entry of Materials or Personal Belongings ________________________________ 96 Travel Related Web Resources _________________________________________________ 96 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2019. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Legal Disclaimer: The US&FCS makes every reasonable effort to ensure the accuracy and completeness of the information in this Guide, a resource for U.S. businesses to use in the exercise of their business judgment. U.S. businesses should conduct their own due diligence before relying on this information. When utilizing the information provided, the U.S. business is responsible for complying with all applicable laws and regulations of the United States, including the U.S. Foreign Corrupt Practices Act (FCPA). References and links to third-parties and their content are provided for the convenience of readers, and are not exhaustive lists of such resources. The US&FCS is not responsible for the availability of any third-party or its content whether found on an external site or otherwise; nor does US&FCS endorse the third-parties or endorse, warrant, or guarantee the products, services, or information described or offered in any third-party content. Please be aware that when following a link to an external site, you are then subject to the privacy and security policies and protections of the new site. 4 Doing Business in Portugal Market Overview Mainland Portugal, along with the autonomous island regions of the Azores and Madeira, offers American exporters a market of approximately 10.3 million people in a country roughly the size of the State of Indiana. As a member of the European Union (EU) and the euro zone, it is fully integrated with the EU, uses the euro currency, and follows directives from the European Commission in Brussels. As with all EU countries, Portugal’s borders and ports are completely open to the free flow of trade with other EU member countries. Portugal has a politically stable environment with a democratically elected parliamentary government and is welcoming of foreign business and investment. Portugal continued an upward trajectory in 2017, registering a record 2.7% growth and witnessing important declines in unemployment, which fell to 8%. In 2018, however, GDP growth decreased from 2.7 to 2.1%. Nevertheless, unemployment fell even further, to 6.8%. The structural reforms implemented since 2011 have created an economic and regulatory climate that is favorable to foreign investment which remains a priority for the Government with a focus on tourism, renewable energy, high quality industrial components, technology services, and value-added agricultural products. U.S. Census data indicates that Portuguese consumers bought approximately $1.19 billion
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