Trade balance improves for selected business services

Trade Balance Improves for Selected Business Services Estimates based on data for the first three quarters of 1986 show that the trade balance on selected business services has rebounded and is projected to reach $2.9 billion for all of 1986. This is an important upturn from last year's balance of $338 million and has been caused by improvements in the Passenger Fares, Fees & Royalties, and Other Private Services accounts.

Receipts of income from direct investment abroad increased again in 1986, but less than in 1985. Gains from appreciation of foreign currency were partially offset by reduced earnings of petroleum affiliates caused by falling oil prices. Other Private Receipts of income decreased due to lower interest rates, and Other Private Payments increased. The balance on the combined income accounts dropped 4.6 percent to $39.1 billion from 1985's balance of $41.0 billion.

U.S. government transactions remained essentially flat from 1985 to 1986, and the projected balance for selected services, plus government transactions andincome ("total services"), also is almost exactly the same as in 1985 at $21.7 billion.

Useful as these figures are, they do not describe the complete range of traded services. Currently, there is an effort within the U.S. government to begin a new survey of international services trade to obtain information about a number of traded services which are not now included in the official data. For further information on this, contact the Office of Service Industries at (202) 377-0351.

Chambers of Commerce

To Congregate in India

India's industry and government elite are preparing to welcome hundreds of international business leaders and senior officials from the United Nations and foreign governments Feb. 11-13 in New Delhi for the 29th Triennial Congress of the International Chamber of Commerce (ICC). India's Prime Minister Rajiv Gandhi will address the opening session.

The occasion will offer participants a range of business contacts and a showcase for India's ongoing drive to liberalize its economy. It is to be hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI), and the ICC's Indian National Committee. Six formal sessions will be held.

Information is available from the ICC's headquarters: Chambers de Commerce Internationale, 38, Cours Albert ler, 75008 Paris, France; tel. (1) 45.62.34.56; telex 650770 INCOMERC-PARIS.

Algeria Apparently Bans

New Letters of Credit Algeria appears to have banned the issuance of letters of credit for payment of its imported goods. Rumors have been circulating to this effect for some months, but no official announcement has yet been made. However, an executive in one of Algeria's premier public sector companies has advised that the Algerian Ministry of Finance is now requiring that all payments take place 90 days after receipt of shipping documents. Until recently, exceptions were being made, which had to be cleared with the Ministry of Finance. In recent months, however, the Algerian official advised that there have been no exceptions.

A representative of a U.S. firm doing business in Algeria also reported seeing a Ministry of Finance memo stating that letters of credit will no longer be accepted. The 90-day payment policy is affecting all foreign firms, even those with a long history of doing business in Algeria. U.S. firms should not expect any flexibility in the near future on Algerian payment terms, which have been tightened by a severe foreign exchange shortage. Some firms exporting to Algeria are experiencing actual payments delays of 120 to 180 days and they are pricing their offers accordingly.

COPYRIGHT 1987 U.S. Government Printing Office
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