§ Mr. DalyellTo ask the President of the Board of Trade what help he gives to British companies in producing catalogues designed to promote British goods in Latin America.
§ Mr. NeedhamA commercial publicity support package is available to companies participating in an overseas trade fair, exhibition or outward mission.
§ Mr. DalyellTo ask the President of the Board of Trade what discussions he had had with the Institute of Export about training people in Latin American studies.
§ Mr. NeedhamMy Department liaises with the Institute of Export on a number of matters. The institute, through its 21 regional centres and its magazine "Export
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Latin America Summary of ECGD cover position as at July 1994 Market Medium term Cover availability Cover availability for cash SGs Consensus category ECGD underwriter Telephone Comments Argentina 3DX R 2A Martin Crane 071-512 7320 Cover available Bolivia 0 R 3 Stan Rosenthal 071-512 7558 No cover available Brazil 4DX Y 2B Stan Rosenthal 071-512 7558 Cover available for the private sector. Public sector cover on a case by case basis Chile 4 Y 2B Stan Rosenthal 071-512 7558 Cover available Colombia 4 Y 2B Stan Rosenthal 071-512 7558 All facilities available Costa Rica 0 R 2B Nick George 071-512 7557 No cover available Cuba 0 R 2B Nick George 071-512 7557 No cover available Ecuador 0 R 2B Stan Rosenthal 071-512 7558 No cover available El Salvador 2DX Y 3 Nick George 071-512 7557 Cover available Guatemala 0 R 2B Nick George 071-512 7557 No cover available Honduras 0 R 3 Nick George 071-512 7557 No cover available Mexico 3 Y 2B Stan Rosenthal 071-512 7558 All facilities available Nicaragua 0 R 3 Nick George 071-512 7557 No cover available Panama 0 R 2A Nick George 071-512 7557 No cover available Today", ensures that its members are fully informed of opportunities in Latin America and elsewhere, drawing on the support and advice of the Overseas Trade Services.
§ Mr. DalyellTo ask the President of the Board of Trade what representations he has had from the engineering industry and related consultants on the export of invisibles to Latin America and problems of credit cover.
§ Mr. NeedhamThere have been no representations to my Department from the engineering industry or related consultants on the export of invisibles to Latin America and the provision of export credit support for the same sector.
§ Mr. DalyellTo ask the President of the Board of Trade what help he is giving to British water companies to export expertise to Latin America.
§ Mr. NeedhamI have established a water sector group of the Overseas Project Board under the chairmanship of my right hon. Friend the Member for Bridgwater (Mr. King). Its overall aim is to help the United Kingdom water industry to maximise its share of overseas markets for its products and skills. In addition, British water companies are given maximum support in exploiting opportunities in Latin American markets by Whitehall Departments and our embassies overseas.
§ Mr. DalyellTo ask the President of the Board of Trade if he will make a statement about the credit cover given to Latin American countries by(a) the United Kingdom and (b) the United Kingdom's major industrial competitors.
§ Mr. NeedhamThe Government are committed to improving the competitiveness of United Kingdom exporters. We have capped the premium rates in certain markets where these may be out of line with the rates charged by our main competitors. We have restored export credit cover for markets emerging from the debt crisis earlier than would normally have been the case. We have recently revised the project financing and overseas investment insurance scheme to provide more flexible support for exporters. A summary of the official export credit support provided by the Government to United Kingdom companies exporting to Latin America is being sent to the hon. Member and to the House of Commons Library. The cover available from the United Kingdom is broadly comparable with that provided by our major industrial competitors.
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Market Medium term Cover availability Cover availability for cash SGs Consensus category ECGD underwriter Telephone Comments Paraguay 2 Y 2B Stan Rosenthal 071-512 7558 All facilities available Peru 0 R 2B Stan Rosenthal 071-512 7558 No cover available Uruguay 4 Y 2B Stan Rosenthal 071-512 7558 All facilities available Venezuela 4 Y 2A Stan Rosenthal 071-512 7558 Cover available for the private sector and PDVSA. (Public sector cover on a case by case basis) Key:
Medium term cover availability
4 = All facilities generally available. Cover may be limited, but at least £50 million is currently available, to be allocated on a first come, first served basis.
3 = All facilities generally available. Cover may be limited, but at least £50 million is currently available, to be allocated on a first come, first served basis, but also subject to portfolio controls, i.e. Amber Zone Budget.
2 = All facilities generally available. Cover may be limited, currently with less than £50 million available, to be allocated on a first come, first served basis.
1 = No cover available but under review.
0 = No cover available.
DX = Limited cover available and only for projects which aid recovery.
Cover availability for cash SGs (Specific Guarantees) for projects or one-off services contracts
Y = Yes.
N = No.
R = Refer to Underwriter.
Consensus category
1 = Relatively rich countries with officially supported finance at Commercial Interest Reference Rates (CIRRs). Maximum credit period 5 years (exceptionally 8.5 years).
2A = Intermediate countries, with officially supported finance at Commercial Interest Reference Rates (CIRRs). Maximum credit period 8.5 years.
2B = Intermediate countries, with officially supported finance at Commercial Interest Reference Rates (CIRRs). Maximum credit period 10 years.
3 = Relatively poor countries, with officially supported financing at SDR-based rate or CIRRs. Maximum credit period 10 years.
§ Mr. DalyellTo ask the President of the Board of Trade what encouragement he gives to British exporters to make contact with trading organisations and decision-making provincial Governments in the provinces of Argentina and with greater Buenos Aires.
§ Mr. NeedhamThe British embassy in Buenos Aires encourages individual United Kingdom companies and trade missions to visit the provinces of Argentina where many business opportunities can be found.
§ Mr. DalyellTo ask the President of the Board of Trade what discussion he has had with the incoming Government of Venezuela about trading with the Venezuelan utilities.
§ Mr. NeedhamDiscussions have taken place between officials, including the DTI export promoter, and representatives of the Venezuelan Government about the supply of United Kingdom goods and services to utilities in the gas, electricity and water sectors.
§ Mr. DalyellTo ask the President of the Board of Trade what progress he has made in the marketing plan process in relation to South America.
§ Mr. NeedhamMarket plans have been prepared for each of the United Kingdom's major markets in Latin America and are updated to reflect changes in the markets.
§ Mr. DalyellTo ask the President of the Board of Trade what information he has about the number of export promoters he has brought in from the private sector to his Department to promote trade to South America; and if he will make a statement.
§ Mr. NeedhamEight export promoters covering Latin America have been seconded from the private sector.
§ Mr. DalyellTo ask the President of the Board of Trade what are the results of the study undertaken by his
516WDepartment between October 1992 and March 1993 on exports to Colombia, particularly in relation to railway rehabilitation.
§ Mr. NeedhamThe report of the United Kingdom-Colombia trade facilitation group was published and a copy has been placed in the House of Commons Library. Railways were identified as a sector offering good opportunities for United Kingdom companies.
§ Mr. DalyellTo ask the President of the Board of Trade why he has raised the cost of ECGD cover to Argentina; and what estimate he has made of the effect on United Kingdom trade.
§ Mr. NeedhamECGD premium rates vary as a result of regular reviews of the risks associated with doing business in different markets.
It is difficult to assess in isolation the effect of ECGD premium rates on trade, but the impact of the recent increase for Argentina is likely to be negligible.
§ Mr. DalyellTo ask the President of the Board of Trade what contracts Her Majesty's Government have with chambers of commerce in major Latin American cities.
§ Mr. NeedhamBritish embassies, visiting export promoters and officials from my Department have frequent contacts with chambers of commerce in the major cities of Latin America. Visiting United Kingdom business men are also encouraged to contact them as these chambers can offer valuable assistance.
§ Mr. DalyellTo ask the President of the Board of Trade at what level in their companies were the business men who accompanied the Chief Secretary to the Treasury on his visit to Latin America; and what his policy is towards persuading British companies to send their most senior executives to Latin America.
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§ Mr. NeedhamIt is a matter for individual Ministers to decide whether it is appropriate for a business team to accompany them, although this is now increasingly done. United Kingdom companies invited to join the business teams are encouraged to be represented at levels which will maximise the opportunities offered by the visits. This is generally at senior executive or board level which was the case, for example, with the recent visit to Brazil by my right hon. Friend the Chief Secretary to the Treasury.