Hot Links

Become a TPP

Bureau of Industry & Security

Bureau of Census

China Business Center

Export Admin. Regulations

Find HS Numbers

Importing

Int'l Trade Guides

Int'l Business Planning
Market of the Month

MDEC Membership

MDEC Members Only
Michigan Exports

Michigan Export Services

TPP Only

USDOC Int'l Trade Admin.

WebGuides

What's new

Free Counseling
It doesn't matter whether it's as close as Windsor or as far as Hong Kong or Zimbabwe, the Michigan District Export Council has someone who's been there and done that.  We encourage you to give us a try.

Portugal

Introduction: Why Portugal?

Bordering Spain and speaking a language all its own, Portugal invokes a romantic notion of breathtaking scenery, rich history and cobble-stone roads. The small country of Portugal is the oldest nation state in Europe, having essentially established its current borders in the 12th century. A world power during the 15th and 16th centuries, Portugal had an empire stretching from Latin America to Asia. It has reformed its government in the past twenty years, granting independence to its former African colonies and joining the European Union in 1986.

Although Portugal is a European country it looks towards the Atlantic and to trade with others. After all, Portugal discovered trade routes to Africa before Columbus landed in America! U.S. exporters have increasingly found this market to be receptive and eager for their goods. Bilateral relations between the United States and Portugal are excellent, characterized by shared democratic values and similar foreign policy perspectives. As in many other small countries, personal relationships are a key component of doing business here. The U.S. Commercial Service can help your company build these personal relationships to successfully expand your international sales to Portugal. Portugal can be an excellent base of operations for doing business in Brazil, Africa and in the rest of Europe.

Top

Economic Outlook

Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past decade, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. Riding a crest of positive world economic news and EU investment in the late 1990’s, Portugal’s economy boomed. In the past couple of years, however, both its economy and government financing have slowed considerably. It has embarked on a wide-ranging, microeconomic reform program, which should have a positive impact on long-term economic growth potential.

As a member of the European Monetary Union (EMU) since 1999, Portugal has experienced exchange rate stability, price stability and lower exchange rates. Portugal’s economic growth has been above the EU average for much of the past decade, but fell back in 2001-03. Portugal's economic growth over the last decade has been accompanied by heavy investment in infrastructure, largely funded by the EU.

Top

Portugal at a Glance:

Top

Best Prospects for U.S. Exports:

There are many industries where U.S. exporters have made great strides in Portugal. Top prospects in 2004 are:

1. Telecommunications Equipment
2. Computer & Software
3. Internet & e-commerce
4. Computers & Peripherals
5. Pollution Control Equipment
6. Medical Equipment
7. Energy Services
8. Franchising
9. Defense Services
10. Tourism

Top

Michigan Exports to Portugal

Top

Success Story - Papa John’s: Exporting Good Taste

With over 3000 units worldwide, Papa John's International Pizza Co. is the fastest growing pizza chain in the U.S. – and with the help of the U.S. Commercial Service, is becoming a household name around the world. Based in Louisville, Kentucky, Papa John's is rapidly expanding its international franchises in Europe, Asia and the Americas. Papa John’s had to look no further than its local Louisville U.S. Export Assistance Center (USEAC) to find the export counseling it needed to find international success.

During the past several years, Papa John’s has worked closely with the Louisville USEAC and our international offices to find global opportunities. The Commercial Service provided intensive counseling, market research, franchise event information, and trade contacts that have been vital to Papa John's expansion. Papa John’s made extensive use made extensive use of the Gold Key Service, trade missions, and other franchisee search services in numerous markets to satiate the worldwide demand for its pizza.

With its market open to U.S. franchises, Portugal was a natural fit for the pizza company. In 2003, Papa John’s used the Gold Key Service to help the firm locate master franchisee candidates. The Portugal office provided detailed guidance about the Portuguese market and coordinated the firm's meetings with franchisees. As a result of this assistance, Papa John's signed a master franchisee for the Portuguese market, and plans to open 50 units in the country.

Top

Doing Business in Portugal

For U.S. companies doing business in Portugal, they will find practices relatively similar to other European nations. However, there are a few key points that every U.S. business should keep in mind when working with Portugal:

- Local Representative. Portugal is a small country and knowing people in your industry is important. Therefore exporters need a local representative who must have good contacts in order to be aware of future contracts and to participate in tenders. The U.S. Commercial Service can help you find a local representative to increase your chances of success in this market.

- Impact of the EU. If homework has been done for other EU markets it is basically done for Portugal. To look at it another way, if a U.S. firm starts with Portugal they are basically ready to expand into any other European Union country. Many projects are EU-funded, so an EU partner is desirable when bidding on these.

- The Iberian Peninsula. Portugal and Spain is not one homogeneous marketing area. Normally your Spanish distributor should not be asked to cover Portugal unless the Spanish company is willing to set up a separate Portuguese entity to handle this. If Spanish distributors consider Portugal an extension of the Spanish market, they are largely ineffective in Portugal.

- Slow Down. Business takes longer as compared to northern Europe because personal contacts are important. Your customers want to get to know you before they will trust you.

Top

Market Research

Let us promote your company

Looking for sales leads or potential sales representatives in Portugal? The U.S. Commercial Service in Lisbon is offering, for a limited time, a free listing on the Portuguese-language version of our website, which targets an audience of Portuguese importers and commercial buyers. We will translate a description of the product or service for which you are seeking Portuguese representation, distribution or sales prospects.

Learn more about this opportunity!

Contact us Today:

In 2003, the U.S. Commercial Serviced helped companies export $13,744,000 of goods and services to Portugal. Learn how we can help you today!

Contact your local U.S. Export Assistance Center: http://www.export.gov/comm_svc/eac.html

Lisbon:
U.S. Commercial Service
American Embasssy Lisbon
Avenida das Forcas Armadas
1600-081 Lisbon
351-21-770 2528

Oporto:
U.S. Commercial Service
Avendida da Boavista, 3523 Room 501
4100-139 Porto
351-22-618-6607

Senior Commercial Officer Greg Taevs at Gregory.Taevs@mail.doc.gov or 351-21-770-2526

Additional Information

For a detailed overview of the Information and Communications Technology market, please see: http://www.emich.edu/ict_usa/PORTUGAL.htm 

Date Updated: March 27, 2007