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# Belgium

## Automotive Parts and Service Equipment

> Belgium's automotive industry has always been one of the strongest
> components of its economy. Belgium is a world leader in the car
> assembly industry; with more than 95% of its output destined for
> export, Belgium has the highest per capita production in the world.
>
> There is a fairly high renewal rate of cars in Belgium and there are
> 5.9 million motor vehicles registered in the country. In 2002, 467,000
> new cars, excluding 46,000 utility vehicles were on the road; 492,000
> used cars and 64,000 utility vehicles were resold. Each year 485,000
> vehicles fail to pass technical inspections and cannot be driven;
> 190,000 of these cars are stripped for parts, recycled and crushed
> while the rest are resold abroad.
>
> This thriving manufacturing and assembly industry has helped fuel a
> vigorous national automotive supply network. Currently, over 250 firms
> cater supply the industry with raw materials, components, services and
> systems. These firms represent a turnover of about \$11 billion and
> provide employment for some 25,000. With new supplier parks planned
> for Genk and Ghent, the Belgian Automotive Suppliers Association
> predicts this figure will continue to rise steadily over the next few
> years.
>
> Due to the high cost of gasoline and relatively poor gas mileage, 62%
> of newly registered cars are diesel-powered. Market share has risen
> steadily over the past ten years and should continue to increase.
> However, 55% of cars are gasoline powered and less than 1% use
> liquefied petroleum gas.
>
> In Belgium, 90% of cars have a displacement under 2 liters. Fiscal
> burden is very heavy for larger displacement engines. For reference, a
> 3-liter engine would cost over \$2,000 to register and over \$2,000 in
> annual taxes.
>
> In the repair and service equipment market, the most promising
> products are air-conditioning maintenance equipment, electronic
> diagnostic devices, emission testing equipment and testing equipment
> for technical inspection stations.
>
> Environmental awareness is the most recent trend in the Belgian
> automotive industry, especially vehicle recycling; 85% of a newly
> registered car's weight must be recyclable, by 2015, it will be 95%.

+-----------------------------+-------------+-------------+-----------+
| Automotive (\$ in millions) | > 2001      | > 2002      | > 2003    |
|                             |             | > (est.)    | > (est.)  |
+-----------------------------+-------------+-------------+-----------+
| Total Market Size           | > 16,524    | > 19,546    | > 17,355  |
+-----------------------------+-------------+-------------+-----------+
| Total Local Production      | > 21,765    | > 25,745    | > 23,546  |
+-----------------------------+-------------+-------------+-----------+
| Total Exports               | > 24,952    | > 29,515    | > 28,002  |
+-----------------------------+-------------+-------------+-----------+
| Total Imports (incl. from   | > 19,711    | > 23,316    | > 21,811  |
| U.S.)                       |             |             |           |
+-----------------------------+-------------+-------------+-----------+
| Total Imports from U.S.     | > 986       | > 1,166     | > 992     |
+-----------------------------+-------------+-------------+-----------+
| Exchange Rate: Euro per \$  | > 0.8952    | > 0.9454    | > 1.1397  |
+-----------------------------+-------------+-------------+-----------+

> The above statistics are estimates based on FEDERAUTO data,
> [www.federauto.be](http://www.federauto.be/)
>
> **Best prospects:** anti-theft devices, fast-rotating replacement
> parts, and gadgets for in-car entertainment, customizing and sport
> accessories, car maintenance chemicals, hands-free telephone kits, and
> GPS devices. Quality American garage and test equipment is also highly
> respected.

###### Environmental Technology

> Belgium is one of the most densely populated and industrialized areas
> in the world. As a result, it faces numerous pollution and waste
> management problems. Increased attention has been given to
> environmental regulations and consumer protection issues. In addition,
> implementation of EU directives has resulted in the establishment of
> stringent emission controls, stricter recycling goals and waste
> reduction at the source, decontamination of polluted soils, as well as
> the creation and modernization of numerous sewers and wastewater
> treatment facilities.\
> \
> The three regional governments of Belgium, each responsible for
> environmental issues and implementation of European environmental
> legislation in its area, have set up specific long-term environmental
> management plans to reach EU goals. All industry sectors are under
> growing pressure to reduce pollution, driving a rapidly expanding
> market in Belgium for environmental technologies and services.\
> \
> Belgium has been especially late in complying with EU water treatment
> directives. As a consequence, all three regions are investing
> considerable amounts for the construction and upgrading of their
> municipal water treatment plants, collectors and sewers by 2005.
> Adapting water quality to new microbiological standards is also a
> priority, as well as reducing groundwater contamination. In the coming
> years, Belgium will also plan considerable investments in increased
> air pollution control in order to reduce emissions in urban areas,
> mainly produced by intense motor vehicle, aviation and domestic
> heating. Belgium has an excellent record of national waste management.
> However, upcoming EU directives designed to increase recycling
> targets, in various waste streams will require further waste
> management investments in niche sectors, i.e., electrical and
> electronic equipment, used tires and cars, construction and demolition
> waste, healthcare waste and chlorinated solvents.\
> \
> The northern Flanders region plans to clean all contaminated
> industrial sites by 2036. Industrial site owners are now liable, for
> their lifetime, for pollution generated on a site. By 2003, gas
> station soil will need to be sampled and potentially de-polluted of
> hydrocarbons. The southern Walloon region plans to clean old
> contaminated sites by 2010.\
> \
> EU environmental expenditure (public and private sector) is
> approximately 2.3% of GNP, and is estimated for Belgium at
> approximately \$ 5.5 billion divided among water treatment, waste
> management, soil remediation, air and noise pollution control, and
> environmental consultancy. The Belgium environmental market is very
> competitive, primarily engineering and service-oriented, with
> reputable engineering companies. Imports and business partnerships in
> environmental technologies come primarily from Belgium\'s EU
> neighbors, France, Germany, and The Netherlands.
>
> Market Size: Estimated market size of pollution control
> equipment/services (in US \$ millions).\
> These are unofficial statistics due to lack of published statistics in
> this market. Note: differences in the average annual exchange rates
> can distort change in market size.

+----------------------------+---------------+------------+------------+
| Environmental (\$ in       | > 2001        | > 2002     | > 2003     |
| millions)                  |               |            |            |
+----------------------------+---------------+------------+------------+
| Total Market Size          | > 5,297       | > 5,471    | > 5,520    |
+----------------------------+---------------+------------+------------+
| Total Local Production     | > 5,811       | > 6,002    | > 6,055    |
+----------------------------+---------------+------------+------------+
| Total Exports              | > 1,483       | > 1,532    | > 1,545    |
+----------------------------+---------------+------------+------------+
| Total Imports              | > 969         | > 1,001    | > 1,010    |
+----------------------------+---------------+------------+------------+
| Total Imports from U.S.    | > 87          | > 90       | > 91       |
+----------------------------+---------------+------------+------------+
| Exchange Rate Euro per \$  | > 1.12        | > 1.06     | > 0.88     |
+----------------------------+---------------+------------+------------+

> **Best Prospects**: Current best prospects include, measurement,
> monitoring and analysis instruments, sludge treatment, small
> individual and semi-collective water treatment plants of 5 to 100 EP,
> recycling of all waste streams, emissions treatment systems, motor
> vehicles emissions control, in-situ soil bioremediation and off-site
> soil cleaning technologies.

#### General Consumer Goods

The Belgian import and distributor market is constantly on the lookout
for good quality and niche consumer products. Clothing and shoes,
sporting goods, cosmetics and toiletries, food, furniture, interior
decoration articles, electrical appliances, and toys are popular. There
is much demand for innovative, practical and traditional U.S. products.
Emphasis is placed on bio-ecology, the "wellness" trend and high
quality.

> According to FEDIS, the Belgian federation of distributors, retail
> trade, with a yearly turnover of \$68.4 billion, represents about 50%
> of Belgian private household consumption. A third of the purchasing
> power, about \$23 billion, goes to the purchase of food.  Textile and
> clothing represents about \$10.5 billion, while furniture and
> household products are good for \$10.5 billion. There are about 55,000
> enterprises active in wholesale, and 115,000 in retail trade.
>
> Three consumer groups influence Belgian consumption and purchasing
> patterns:
>
> **Children and infants:** Even though the term "millennium boom" is
> probably exaggerated for Belgium, the natural birth rate did increase
> and 2.41 million Belgians are now between infancy to 19 years of age.
> Add to this Belgian demographic, marriage at a later age,
> two-parent-working families, divorced spouses and the dynamic
> phenomenon of "baby boom" grandparents, and a booming market based on
> demand from doting parents and grandparents is quickly developing.
> There is a niche market for American companies.
>
> Original infant and children's clothing, educational toys, products
> related to nursing, bio-food products, wooden furniture and products
> with youth themes are popular. A recently developed Belgian retail
> concept is "birth shops," where products associated with pregnancy and
> births can be found. The custom of the mostly Catholic-oriented
> population in Belgium tending to give small gifts and/or sugar beans
> at birth, sending cards announcing the birth of the child and
> celebrating baptisms and communions also present export possibilities
> for U.S. companies. At a birth, the parents and grandparents receive a
> package filled with sample products and discount coupons distributed
> by the Belgian firms Familyservice and Babyboom. Specialized shops,
> including Bay Expert, Prémaman, and Diana Baby Junior, as well as
> supermarkets, now have a series of products centered around themes
> appealing to children, parents and grandparents.
>
> **Generation M:** The new generation M, also called "adolescents" or
> "Kidults," forms another demographic trend in Belgium and also
> represents a buying force for U.S. companies. The term "generation M"
> refers to those born after 1970. M stands for "Me, Myself and I,"
> "middle income" and "millennium, marketing and media."
>
> This generation will opt to purchase bio-food products at special
> stores, such as Ekki, and purchase "civilly responsible" products at
> specialty stores such as Oxfam and Max Havelaar. The Belgian
> government has even identified this trend and will promote a "social
> label" to identify such products. References to the sixties and to
> adventure are considered hip. Sport clubs, saunas, massages, thalasso
> therapy and beauty farms are extremely popular. Consequently consumer
> goods in the cosmetics, toiletry and wellness sectors are doing
> particular well.
>
> **Baby boomers:** The Organization for Economic Cooperation and
> Development reports that only 41% of Belgians between the ages of 50
> and 64 are working, which is 14% lower than the OECD average. A
> similar study by Vlerick Management School states that pre-pensioners
> who voluntarily take up early retirement are an important segment of
> the Belgian population, amounting to nearly 158,000 people. Senior
> baby boomers wield impressive buying potential.
>
> There is a demand for specific consumer goods within this niche
> market. Extra comfort is sought via special ergonomic chairs, pillows,
> beds, mattresses, baths or showers with sauna and massage effects.
> Consumer goods mostly focusing on seniors are doing well, e.g.,
> hearing aids, glasses and lenses, hair coloring products, and
> dentures. In the new "wellness" culture, vitamins, moisturizing
> creams, cosmetics, biofood and diet products are popular. Television,
> video, microwave, refrigerators, espresso machines, and dishwashers
> are considered household necessities.
>
> This generation also likes to buy luxury items such as high-end
> clothing, jewelry, and sporting gear and fine wines. With their grown
> children moving out of the house, they either buy apartments or opt to
> redecorate their old houses with interior decorators. Consequently,
> there is a market for rich upholstery textiles, original interior
> decoration articles, construction and building materials, and security
> services to protect their property. Food remains important to
> "cocooning" young seniors.
>
> In view of the above, American suppliers and manufacturers seeking a
> marketing edge may want to consider selecting consumer products for
> Belgium that appeal to members of these three consumer groups: infants
> and children, Generation M and their baby-boom (grand) parents.
>
> The following table gives an overview of the total Belgian population
> according to age, plus an estimate of the market for household
> consumption of consumer goods.

+--------------------------------------------------------+-------------+
| Belgian Population 2002 (millions)                     |             |
+--------------------------------------------------------+-------------+
| 0-19                                                   | > 2.4       |
+--------------------------------------------------------+-------------+
| 20-64                                                  | > 6.15      |
+--------------------------------------------------------+-------------+
| 65-65+                                                 | > 1.74      |
+--------------------------------------------------------+-------------+
| Total Population                                       | > 10.2      |
+--------------------------------------------------------+-------------+

  --------------------------------------------------------- -------------
  Household Consumption of Consumer Goods 2002\             
  (\$ in millions)                                          

  Food                                                      23,000

  Textile and Clothing                                      10,500

  Furniture and Household                                   10,500

  Total                                                     68,400

  Exchange Rate Euro per \$                                 1.06
  --------------------------------------------------------- -------------

> **Best Prospects**: infant and children's clothing, educational toys,
> products related to nursing, wooden furniture, bio-food products,
> cosmetics, toiletry and wellness related products, hearing aids,
> glasses, hair coloring products and dentures, luxury sporting goods,
> interior decoration articles.

###### Medical Equipment

> The Belgian medical device market is considered a growth industry and
> will continue to provide very good potential for U.S. suppliers of
> innovative products. Belgium has a long list of medical equipment
> approved for reimbursement and a straightforward reimbursement system.
> This reimbursement system and a stable economy contribute to making
> Belgium an attractive market for U.S. healthcare companies.
>
> The Belgian market for medical equipment is estimated at \$1.55
> billion. Over the past 5 years this sector has seen an annual growth
> of approximately 5%. The Belgian Social Security system, which
> includes the Health Care System, is considered among the most
> extensive and efficient in Europe. It covers nearly 100% of the
> population of 10.1 million inhabitants. In the most severe cases, such
> as cancer or heart conditions, reimbursement rates are up to 100% of
> the total cost of hospitalization, surgery, implants and products.
> However, in most cases, reimbursement is approximately 75% of the
> total cost of medical treatments, services and products.
>
> Belgium produces less than 15% of its overall needs for medical
> equipment. This leaves the market open for heavy competition among
> suppliers from the U.S., France, Germany and Great Britain. The United
> States currently has a 30% share of total medical equipment imports
> into Belgium. American technology is particularly highly esteemed. As
> a result, a significant percentage of American exports are for
> innovative, high-tech equipment.
>
> Belgium is also an effective starting point for marketing medical
> equipment to the rest of Europe due to its geographical location,
> effective health care system, and relatively open attitude toward
> procurement.
>
> Belgian hospitals, especially those managed by medical schools
> (university hospitals), are always seeking to acquire the latest
> technology. In addition, all graduating physicians, whether they are
> specialists or general practitioners, perform their internships in one
> or several of these hospitals. Therefore, university hospitals are
> trendsetters and should be considered as prime marketing targets by
> any supplier of innovative medical equipment or products. Currently
> there are 150 hospitals in Belgium, with a total of 55,732 beds. The
> annual investment in new and replacement hospital equipment is
> estimated at over USD 200 million.
>
> The Belgian Health Care system is a combination of public and private
> insurance. Five "Mutualities," which have some of the same
> characteristics as HMO's, plus one public fund, serve as health
> insurance carriers in Belgium. These "mutualities" are responsible for
> the reimbursement of medical services and treatments provided to their
> members.
>
> There is no difference in marketing medical equipment to public or
> private hospitals. However, for public hospitals the purchasing
> department must issue an official tender to all related suppliers of
> the item being purchased. Private hospitals have more flexibility in
> their procurement practices. Even though they are not required to
> issue official tenders, their purchasing department calls for bids
> when it comes to procuring expensive equipment
>
> **Best Prospects**: U.S. healthcare products and services enjoy an
> excellent reputation in Belgium and as such, the Belgian market is
> open to a broad range of U.S. medical products and services, including
> electro-medical, cardiology, orthopedic, non-invasive surgery and
> rehabilitation equipment. Belgian buyers are looking for high-quality,
> reliable products with low maintenance requirements. Strong
> after-sales service is very important in maintaining customers. In
> general, healthcare products and services that demonstrate a cost or
> utility benefit will provide immense potential for U.S. companies.

**[Security and Safety Equipment]{.smallcaps}**

The Belgian market for safety and security equipment and services has
grown significantly in the recent years. The growing feeling of
insecurity and the presence of several international organizations and
embassies have increased the demand for sophisticated security equipment
and guarding services.

> Due to the increase of robberies of private residences and the
> continuing rise of violent break-ins of SMEs, a truly booming
> sub-sector within the Belgian security market is alarm control
> management. The Belgian Government recently passed a law allowing
> small and medium-sized enterprises to make 13.5% of their investments
> in securing their premises tax-deductible. A new law defining the
> different responsibilities of police forces and private security firms
> has expanded the scope and market potential for security firms. Safety
> at work is getting more attention by the Government and by the
> industry. A media campaign was launched this year to promote safety
> measures and special protective clothing on the work floor.

The Belgian market for security equipment is largely an import market.
About 90% of the equipment is imported from neighboring countries. Quite
often, alarm systems are assembled in Belgium using parts from several
different suppliers. Safety apparel is usually fabricated in Belgium
while safety related equipment is imported from other countries,
including the U.S.

> Many homes and apartments are equipped with intrusion alarm systems.
> Multinationals and international institutions require more
> sophisticated equipment like CCTV, video surveillance, access control
> and guarding services. Since the reform of the police forces, private
> security firms are taking over some of their non-essential
> responsibilities. Safety at work is becoming more important and the
> Federal Employment Ministry launched a media campaign promoting the
> use of safety clothing at work.
>
> **Best Prospects:** intrusion alarm systems, sophisticated equipment
> like CCTV, video surveillance, access control, guarding services,
> safety clothing.

###### Telecommunications 

> During 2001 and 2002, the sector was in crisis. As a result, the
> market was confronted with numerous shifts among market players. In
> the meantime, telecom companies have been reaching out to new
> technologies such as IP-VPN, xDSL, WLAN, and iTV as a way out of the
> crisis. Major investments in competing new platforms are planned for
> the near future. Belgacom, Belgium's former telecom monopoly holder,
> recently announced its \$500 million investment program, called
> "Broadway," to take place between now and 2013 to create a fine-meshed
> fiber optic infrastructure with VDSL technology with speeds up to
> 10Mbps. Telenet, Belgacom's largest competitor in the broadband field,
> announced a similar investment program to upgrade its current cable
> network. Both operators are also launching digital TV and iDTV
> projects and have entered the Wi-Fi market. Mobile telecom operators
> continue to invest in 2.5G networks and are currently making
> investment decisions and choices of equipment suppliers for their 3G
> networks.\
> \
> On the enterprise side, the new technologies of choice are IP, VPN,
> and VoIP principally because solutions with these technologies are
> cheaper than older ones, such as Frame Relay. Business customers are
> spending cautiously and in increments, and this trend is expected to
> become a permanent feature of the market.\
> \
> Federal, regional, and local e-government initiatives to promote
> Internet use by citizens and companies are expected to give a major
> boost to spending on ICT equipment. U.S. manufacturers offering
> state-of-the-art equipment in the technology fields listed above
> should find excellent sales opportunities in the Belgian market.

+-------------------------+----------+----------+----------+----------+
| Telecomm Equipment (\$  |          | > 2001   | > 2002   | > 2003   |
| in millions)            |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total market size       |          | > 2043   | > 2157   | > 2355   |
+-------------------------+----------+----------+----------+----------+
| Total Local Production  |          | > 1471   | > 1553   | > 1696   |
+-------------------------+----------+----------+----------+----------+
| Total Exports           |          | > 1001   | > 1057   | > 1154   |
+-------------------------+----------+----------+----------+----------+
| Total Imports           |          | > 1573   | > 1661   | > 1813   |
+-------------------------+----------+----------+----------+----------+
| Total Imports from US   |          | > 598    | > 631    | > 707    |
+-------------------------+----------+----------+----------+----------+
| Exchange rate \$ per    |          | > 0.90   | > 0.95   | > 1.14   |
| euro                    |          |          |          |          |
+-------------------------+----------+----------+----------+----------+

> The above statistics are unofficial estimates based on EITO
> ([www.eito.com](http://www.eito.com/)) data.
>
> **Best Prospects**: new technologies such as IP, VPN, VoIP and iDTV

###### Travel and Tourism Services

> Travel to the United States has rebounded following the events of
> 9/11, encouraging competition among transportation service providers.
> Airlines and tour operators have kept prices down and interest up.
> American, Continental, Delta, United, and US Airways currently offer
> direct service from Brussels to the United States, while other
> carriers provide service through nearby European cities.\
> \
> The United States continues to be the long-haul favorite vacation
> destination among Belgians.  Regular yearly increases in visitors are
> significant and expected to surpass pre-9/11 level by 2007, though the
> evolution of the market will depend upon the world political situation
> and economy.  A cheaper dollar is a powerful boost for travel to the
> U.S. Extensive business and cultural ties between Belgium and the
> United States, as well as a deep interest in the American way of life,
> natural parks, big cities, and attractions, provide an excellent basis
> for promotion of the U.S. tourism industry.\
> \
> New York, Florida and California continue to be the most popular
> destinations, though Chicago, Atlanta, Washington D.C., Boston and
> Cincinnati also see significant traffic. Most Belgian travelers visit
> more than one state in the U.S. and venture into a variety of
> locations. An increasing number of Belgian visitors choose to rent
> cars to visit towns and cities, thus increasing motor tourism.\
> \
> The Visit USA Promotion and Marketing Bureau is a useful source of
> information for travel industry professionals and the general public.
> The organization annually handles over 40,000 requests for
> information. They also organize travel promotion events. Their major
> annual event is the Visit USA Workshop, which takes place March 10,
> 2004. At this event more than 50 exhibitors meet with over three
> hundred travel and trade professionals from Belgium and Luxembourg.
> Contact information for Visit USA is website:
> [[www.visitusa.org]{.underline}](http://www.visitusa.org/), E-mail:
> info \@visitusa.org, and Fax: +32/ (0)3 230 09 14.

+---------------------------------+----------+----------+-------------+
| Travel and Tourism Services (\$ | > 2001   | > 2002   | > 2003      |
| in millions)                    |          |          |             |
+---------------------------------+----------+----------+-------------+
| Total Market Size               | > 7,655  | > 7,606  | > 6,555     |
+---------------------------------+----------+----------+-------------+
| Foreign Total Spending on       | > 5,741  | > 5,705  | > 4,916     |
| Travel                          |          |          |             |
+---------------------------------+----------+----------+-------------+
| Total Spending on Domestic      | > 1,914  | > 1,901  | > 1,639     |
| Travel                          |          |          |             |
+---------------------------------+----------+----------+-------------+
| Total Spending by Belgians      | > 364    | > 318    | > 328       |
| Visiting U.S.                   |          |          |             |
+---------------------------------+----------+----------+-------------+
| Total Number of Belgians        | >        | >        | > 164,000   |
| Visiting U.S.                   |  182,000 |  159,000 |             |
+---------------------------------+----------+----------+-------------+
| Exchange rate Euro per \$       | > 1.12   | > 1.06   | > 0.87      |
+---------------------------------+----------+----------+-------------+

> **Best Prospects:** fly-and-drive packages, mobile home vacations, and
> event-specific packages (i.e. ski weeks, shopping trips, Disneyland).