By Lynn Fabrizio

Normalization of bilateral trade relations and Bulgaria's ambitious economic reforms make the country a "sleeper" market with excellent potential for both exporters and investors. U.S. exports to Bulgaria in 1991 rose sharply--69 percent to $142 million--despite considerable economic problems.

U.S. exports 1991--$142 million U.S. imports 1991--$56 million

The economy worsened further in 1991, with industrial output dropping 26 percent and real GDP falling 22 percent. Also, Bulgaria's close economic ties with the former Soviet Union made it more vulnerable than neighboring countries to a serious energy crunch from reduced Soviet deliveries of oil and gas.

Both the IMF and the World Bank are working with Bulgarian government officials to resolve its debt problems and to stabilize the economy. Bulgaria has agreed with the Paris Club on rescheduling $1.2 billion in official debt, and initial negotiations with the London Club concerning $8.2 billion in commercial debt began last month.

U.S. relations with Bulgaria moved fast-forward last year. A bilateral trade agreement was signed in April 1991; MFN trading status went into effect in November. In addition, Bulgaria became a GSP beneficiary in December. OPIC and TDP programs are now open in Bulgaria. Eximbank offers short-term credit insurance for U.S. exports to Bulgaria through the Foreign Credit Insurance Association. Finally, once the recently initialed Bilateral Investment Treaty is signed, American investors will receive national treatment guarantees as well as the assistance of an ombudsman office.

Due to growing U.S. company interest, the U.S. Commerce Department opened a U.S. and Foreign Commercial Service office in Sofia in March. As part of Commerce's Eastern Europe Business Development Program, the office will launch the "Eastern Europe Looks for Partners" matchmaking program. For further information on doing business in Bulgaria, contact Commerce's Eastern Europe Business Information Center at (202) 482-2645.

Source: International Trade Administration, Business America Magazine