FRENCH OFFICIAL TO SPEAK ON EURO IMPACT ON FEB. 9

NICARAGUAN TRADE FINANCE LUNCHEON SET FOR JAN. 19

AMA PRESIDENT TO TALK ON RISING HEALTHCARE COSTS

The luncheon, sponsored by the World Trade Center, The Chamber/New Orleans and The River Region, and the Orleans Parish Medical Society, provides Dr. Dickey the opportunity to address the impact of the rising cost of healthcare and the responsibility of businesses to help finance employee insurance rates. After examining global, national and local healthcare costs and financing initiatives, Dr. Dickey will address local concerns. She will discuss potential legislation expected in the next session of the Louisiana legislature which may impact healthcare in the state.

President since June 1998 of the AMA, the largest professional organization for doctors in the nation, Dr. Dickey is a board-certified family physician from College Station, Texas. She is also currently the program director for the Brazos Valley Family Practice Program associated with Texas A&M University. A graduate of the Stephen F. Austin State University, she received her medical training at the University of Texas Medical School in Houston, where she was a recipient of the Distinguished Alumni Award.

For more information about the luncheon, please call the WTC at (504) 529-1601, ext. 254.

OPIC PRESIDENT TO DISCUSS U.S.-CENTRAL AMERICAN INITIATIVES

About OPIC

Established by Congress as an independent agency in 1971, OPIC strengthens American economic growth by supporting global investment, helps American businesses compete in emerging markets, and supports U.S. foreign policy and development initiatives. OPIC operates on a self-sustaining basis at no net cost to the U.S. taxpayers because it accesses reasonable fees for its products and services.

Since 1971, OPIC has helped create 237,000 new U.S. jobs and $58 billion in exports. OPIC helps America compete by insuring against the inability to convert local currencies into dollars, expropriation of assets by foreign governments, and political violence. OPIC also finances long-term, private investment through loan guaranties which work in partnership with commercial lenders. Direct loans are reserved for smaller U.S. businesses, and OPIC-guaranteed private equity funds act as a catalyst for private sector activity in developing countries by investing in new, expanding or privatizing companies.

OPIC in Central America

Last December 11, President Clinton announced that the United States was providing an additional $17 million in food aid bringing the U.S.’s total relief assistance to $300 million. Since Hurricane Mitch hit Central America, OPIC has announced that it will work to spur private sector investment starting with an initiative to accelerate more than $200 million in new projects for the region.

OPIC in Louisiana

To date OPIC_has provided $353 million in financing and insurance commitments for projects sponsored by Louisiana companies. These projects have generated more than $1 billion in U.S. exports and created 4,550 American jobs. In the last five years alone, OPIC-committed projects identified $208 million in goods and services that will be bought from Louisiana suppliers, 84% of which are small Louisiana businesses. These exports will create more than 650 local jobs in Louisiana. Louisiana businesses are currently seeking possible OPIC support for 10 future projects, representing a potential $397 million of investment.

About George Muñoz

George Muñoz has served as the President and Chief Executive Officer of OPIC since August 1997. In that capacity, Mr. Muñoz is responsible for directing all of OPIC’s finance and insurance activities, including managing the agency’s worldwide business portfolio of more than $20 billion.

Prior to his OPIC appointment, Mr. Muñoz served as the U.S. Treasury Department’s Chief Financial Officer and Assistant Secretary for Management under Treasury Secretary Robert Rubin. He was directly responsible for much of the financial and internal management of the Department, including overseeing the formulation and expenditure of its $11 billion annual budget.

Mr. Muñoz came to Washington from Chicago. He is well known in the Chicago business and civic communities. Between 1980 and 1989 he was in the law firm of Mayer, Brown & Platt where, as a partner of that firm, he worked on international tax and business matters. Between 1989 and 1993 he managed his own law firm dedicated to international law and business with a focus on structuring foreign investments and commercial transactions.

Mr. Muñoz’s career includes extensive service on prominent boards, including three consecutive one-year terms as President of the Chicago Board of Education in the mid-1980s. He also served on the Boards of the Illinois International Port Authority, the Chicago Council on Foreign Relations, Chicago Catholic Charities, the Goodman Theatre, the Chicago Symphony, and as a Trustee of DePaul University.

Born in Brownsville, Texas in 1951, Mr. Muñoz holds a business degree from the University of Texas, a master’s degree in Public Policy from Harvard’s Kennedy School of Government, a law degree from Harvard, and a Master of Law in Taxation from DePaul University.

CALENDAR OF LOUISIANA EVENTS

January 19 -Nicaragua luncheon seminar in the Plimsoll Club sponsored by the American/Nicaraguan Chamber of Commerce. Call (504) 595-3013.

January 20 -"Export/Import Strategies and Market Research Seminar" from 3:45 p.m.-8:15 p.m. at the World Trade Center. Call the Louisiana International Trade Center (LITC) at (504) 568-8222.

January 21 -"U.S. Policy Initiatives in Central America in the Aftermath of Hurricane Mitch" featuring the Hon. George Mu–oz, President & CEO, Overseas Private Investment Corp. (OPIC), at the Plimsoll Club in New Orleans. Call the WTC at (504) 529-1601, ext. 254 or ext. 222.

January 25 -"Pricing, Terms, Quotations and Customs Entry Procedures Seminar" from 3:45 p.m.-8:15 p.m. at the World Trade Center. Call the LITC at (504) 568-8222.

January 27 -"International Banking, Financing, Transportation, and Documentation Seminar" from 3:45 p.m.-8:15 p.m. at the World Trade Center. Call the LITC at (504) 568-8222.

February 4 -"The Rising Cost of Healthcare: A Worldwide Business Concern" luncheon program at the Plimsoll Club featuring Dr. Nancy Dickey, President of the American Medical Association. Call the WTC at (504) 529-1601, ext. 254 or ext. 222.

February 9 -"The Impact of the Euro for U.S. Companies" luncheon program at the Plimsoll Club featuring Pierre LePetit, French Consul General and Trade Commissioner in Houston. Call the French American Chamber of Commerce at (504) 524-2042.

IMPORT/EXPORT COURSE TO BE HELD IN LAFAYETTE

Some of the topics to be presented at the seminar will be Export & Import Licenses, Export & Import Documentation, Customs Entry Procedures, and Freight Forwarders & Customs Brokers.

The registration fee for the seminar is $100, which includes course materials. Contact Lee Dotson at (318) 291-5474 to register.

APRIL TRADE SHOW IN WARRINGTON, ENGLAND

Enthusiastically supported by the U.S. Embassy in London, small-to medium-sized companies thinking about exporting to the U.K. should seriously consider participating in this event.

The European Union (EU) of 15 nations, encompassing a market of $8 trillion and 372 million consumers, is by far the largest and most important global economic partner for the U.S. The U.K. is currently the largest customer for U.S. goods and services within the European Union.

The European Union’s single market objective, established in law, is to remove internal barriers to the movement of goods, capital, labor and services. This has created major opportunities for American exporters, who will be able to manufacture to a single set of product standards, whereas previously each country had its own set of product standards.

There is further opportunity for U.S. export gains in Europe through aggressive promotion efforts. U.S. companies have an 11 percent share of the U.K. market, but less than 6 percent of the rest of the European Union. A promotion focus on other EU markets has the potential to raise market share throughout the European Union.

You can begin to investigate this potential by participating in Business Connections. Compared to other international shows, this one is relatively inexpensive. In fact, booths are free for U.S. companies. There is a $400 administrative fee to cover expenses for matchmaking, internal transportation and social activities during the show.

For details, please call Gilbert "Whitey" Lagasse, Louisiana Department of Economic Development, at (504) 529-1601, ext. 230.

CONFERENCE ON AIR C ARGO AND THE INTERNET

A stellar group of speakers -- representing shippers, air carriers and information technology suppliers -- will explain that corporate traffic managers who ship by air are warning their transportation service providers to get "up to speed" on the Internet, or risk losing their business. Michael Casey, Managing Director, Deployment Resource Group, will moderate a panel titled "Why Yesterday’s Procedures Won’t Keep Today’s Customers." Casey’s panel will suggest that getting on line means more than just developing a site to provide information about your company.

Many companies are now using the Internet to book orders, trace and track real time shipments, and collect funds electronically. Echoing this, Browning Rockwell, the President of Trade Compass Co., will describe how the Internet now makes it possible for small companies to have global aspirations. The Internet gives companies a common method for doing reciprocal business anywhere in the world. Of particular interest to Gulf Coast shippers will be the second day panel on Internet Air Cargo and Latin America. A group of speakers will discuss how the Internet has become a vital link for transportation companies servicing the Western Hemisphere’s north-south trades.

For further information on attending, sponsoring, or exhibiting at the conference, contact Jessica Dunlap at the Journal of Commerce at 1-800-223-0243, ext. 7163.

LATIN AMERICA GRANT OPPORTUNITIES

(1) Latin America Fund for the Environment. This is a continuation of the USAID-funded Latin America Fund for the Environment (LAFE), through which companies are eligible to receive matching grants of $5,000. These business development grants are available to U.S. environmental firms seeking to enter the Latin American market in one of the following three sectors: 1) industrial wastewater treatment; 2) energy Efficiency Projects; 3) pollution-prevention and clean technology projects. The deadline for submissions of proposals for this program is January 29, 1999.

(2) Latin American Fund for the Environment - ANDEAN Region. Also funded by USAID and administered by NASDA, this grant is designed to help companies explore environmental business opportunities in the Andean nations of South America. Companies are eligible to receive up to $15,000 provided they are targeting a pollution prevention project in one or more of the four Andean countries: Bolivia, Chile, Ecuador, and Peru. The deadline for applications is February 18, 1999.

Readers interested in applying or seeking more information should contact Julie Pike or Amy Wood at NASDA at (202) 898-1302, or e-mail at jpike@nasda.com or awolf@nasda.com .

DE LA CANAL APPOINTED CONSUL GENERAL OF MEXICO

Mr. de la Canal holds a degree in economics from the Instituto Tecnol—gico Aut—nomo de MŽxico. In 1979 he graduated from Stanford University with an MBA in Finance. Before being appointed Consul General of Mexico, he served as Director of Planning, Programming and Budget of Mexico’s Department of Education. Other principal assignments include Consultant to the Secretary of Education between 1992 and 1994, and Consultant to the Secretary of Programming and Budget from 1990 to 1992.

Mr. de la Canal’s previous experience in economics and finance in the private sector includes the Chase Manhattan Bank, Citibank, and the consulting firm Fintech, S.A. He also has taught at the Alexander von Humboldt German School, of which he is an alumnus, the Instituto Tecnol—gico Aut—nomo de MŽxico, and the Universidad Iberoamericana.

Mr. de la Canal can be reached at (504) 522-3596 at the Consulate General located at the World Trade Center in New Orleans.

SEIMNAR TO DISCUSS FOREIGN SALES CORPORATIONS

This program is designed for corporate tax executives, tax managers, corporate controllers/treasurers, CFO’s, and CPA’s, FSC Service Providers, lawyers and tax counsels. For more information and to register, contact FDTA (FSC/DISC Tax Association) at (914) 328-5656 or fax at (914) 328-5757.

SAUDI TRADE MISSION TO ATTEND CLINICAL LAB EXPO

WTC LANGUAGE CLASSES TO BEGIN FEBRUARY 22

EMPLOYMENT OPPORTUNITIES

Jerome M. Medicus lived in Louisiana for 30 years, and is seeking an international sales manager position. With 24 + years of international sales and marketing experience in the private sector, he served as Assistant Secretary of Commerce of Louisiana and Director of Louisiana’s Department of International Trade, Finance and Development. He is directly responsible for many millions of dollars in export sales involving both relatively inexpensive and expensive products and/or services. He is experienced in writing, negotiating and implementing agency and distributorship agreements and joint ventures. Currently in Mobile, Alabama, he would consider relocation. He can be reached at (334) 478-0285, fax (334) 478-2884, or e-mail: medicusj@zebra.net.

Nina Palmer is seeking a position with an international dimension within communications, marketing or market research. She has a Master of Science degree from the London School of Economics and Political Science (LSE), U.K., and has a total of four years of work experience in market research, public affairs, and the European Commission. She is fluent in English, Norwegian, Swedish, and Danish. In addition, she has a good understanding of French and German. Nina may be contacted by phone (504) 495-7249 or e-mail: palmer_nina@hotmail.com.

FACTS YOU SHOULD KNOW ABOUT THE EURO

The euro arrived on January 1, 1999. Many of the old currencies of the European Union market will soon be a thing of the past. The euro will bring down the costs of doing business, but competition will become tougher. Europe is changing, so U.S. exporters can’t stand still without running the risk of losing their markets. Don’t be put off because your company is small. Over 20,000 small- and medium-sized companies export to Europe; you can too.

What’s the Big Deal? What is the euro and EMU? Why should I care?

The 15-country European Union (the EU), which is America’s biggest overseas market, has just established a new currency called the euro. Though the EU has been in existence (starting off as the European Economic Community) since 1958, each of the countries in the EU has always had its own currency - - French francs, German marks, etc. Now they have agreed to drop their individual currencies and all use one single currency - - called the "euro." Since the 350-million person $8 trillion EU market is the world’s largest - - larger even than the United States or NAFTA - - this is really a big deal. It will affect all U.S. companies selling to or doing business in Europe.

While larger firms and multi-national corporations are preparing for EMU, there are many small- and medium-sized exporters that have not yet thought about the preparation they need to make in order to take advantage of, and successfully navigate, the EMU. The U.S. Department of Commerce believes it is most important to present the questions and practical issues which managers and CEOs of small- and medium-sized export companies will be facing in the near future.

When does the euro start?

Switching to a new currency is extremely difficult. Just imagine the task if each of the 50 U.S. states had its own currency and its own central bank, and then had to agree with the other 49 states on a single currency and a single financial system. That is just what the Europeans are doing, and they have recognized that it has to be done carefully, and not all at once.

The first phase started on January 1, 1999. At that time, 11 of the 15 countries adopted the euro to be used for banking and accounting transactions. No euro currency or coins are yet available since the euro is starting only as an official unit of accounting. Nonetheless, companies and individuals can start writing checks in euros, keep their books in euros, and value inventory in euros, etc., everything except using euros as cash. Euro bills and coins will not be available until January 1, 2002.

Just what is the EMU, and how is it different from the euro?

The EMU is the European Economic and Monetary Union, which has the ultimate goal of introducing a single currency: the euro. The EMU will have a profound impact upon financial systems as they now exist. It will replace the national currencies presently in circulation with the euro, change and remove existing monetary policies from Europe’s financial markets, and alter fiscal policies in both markets and nations. It will effectively initiate a merger of all capital markets within the nations that will be participating in EMU. The significance of the euro goes beyond just replacing the eleven national currencies. It will lower the costs of goods and services across the euro zone and will allow increased price transparency.

Will companies have to use euros after January 1, 1999?

No. Starting January 1, companies and individuals may start using euros if they wish; they don’t have to. They may continue to keep their books in local currency and may continue to use local currency exclusively for all their transactions. But, they can only do this until July 1, 2002. After that date, local currencies will no longer be legal tender.

So companies and individuals can continue to use local currency for a while?

Yes, but local currencies technically lost their individuality on January 1. At that time, their value became finally and irrevocably fixed to one another and cannot vary. The local currencies all become different ways of expressing the euro. Something may, for example, be priced at 1 euro or 1.65 deutschemarks or 4.52 francs, etc. - - but these are just different expressions of one price. It is just like saying something costs $1 or four quarters or ten dimes or 100 pennies.

A number of major European companies, including Daimler-Benz, Siemens, and Philips, announced that they would start using the Euro on January 1. This will necessarily induce their suppliers to do the same in the very near future. Thus, the euro will come into widespread use this year.

Has the value of the euro been set?

Yes. The value was agreed to on July 1, 1998 and will not change. Conversion from domestic European currencies to the euro includes six significant figures, discounting initial zeros, and is defined in terms of one Euro expressed in national currencies. The euro is divided into one hundred cents, and the actual conversion rate is one-to-one between the euro and the ECU. Technically and legally, however, the value of the euro in terms of individual currencies was not irrevocably set until January 1, 1999.

When will euro notes and coins be available? How is the euro to be introduced?

The introduction of the euro is occurring in a three-phase process.

Phase A began May 3, 1998, with the selection of the eleven member countries that will participate in EMU and the creation of the European Central Bank.

Phase B began January 1, 1999, when the euro was established as the official currency of the European Economic and Monetary Union, and will continue until December 31, 2001. During Phase B, the participating national currencies will still circulate; but their value will be as expressions of the euro. The euro will be used as an accounting unit and all monetary, capital, forex, and interbank markets will convert their operations over to the euro.

In Phase C, the euro will become the official single currency on January 1, 2002 when euro notes and coins will be issued. This is the period during which both the euro and the national currencies will co-exist, but the national currencies will be phased out of circulation within six months. As of July 1, 2002, the euro will stand alone and the national currencies will cease to be legal tender.

How will the Europeans keep their economies from drifting apart in the next few years?

This has been a difficult process. Countries cannot, of course, pursue different rates of money growth, have different rates of real economic growth, and different rates of inflation while having currencies that don’t move up or down relative to each other. So, the first thing the Europeans had to do was to align their economic and monetary policies together. This effort, called convergence, has been remarkably successful. It has led to a high degree of uniformity in terms of price inflation, money supply growth, and other key economic factors.

The next step is the formation of a single European Central bank - - the only institution that can issue money, the only issuer of the euro. That means each of the 11 participating countries gives up its own right to print money and to control its money supply. The countries have formed the Economic and Monetary Union (EMU), which enables Europe to advance the process of economic integration which was envisioned in the Maastricht Treaty. This project merges the separate monetary and fiscal policies of the 11 countries within the euro zone and unites the markets of Europe with a single currency: the euro.

The European Central Bank (ECB) is located in Frankfurt, Germany, and is responsible for the daily operations and management of EMU and the euro. The Growth and Stability Pact ensures that the original convergence criteria are adhered to by the member countries participating in the Economic and Monetary Union. This will ensure the continued economic legitimacy and integrity of the EMU.

The European system of Central Banks (ESCB) consists of the central banks of the EMU member countries. The role of these banks will be similar to that of the reserve banks in the U.S. system. The ESCB will, in conjunction with the ECB, oversee the EMU stability, monetary policy, and will execute foreign exchange operations.

Why are the Europeans doing this? What was wrong with having different currencies?

How unified do you think the U.S. economy would be if you had to exchange Louisiana money for Mississippi money or for any other state currency each time you did business across a state border? The exchange rate betrween the two monies would be uncertain. In addition, you would have to pay a commission for exchanging your currency every time. This is the problem the Europeans have been facing. It has been estimated that if a business executive began with $1,000 worth of currency in one European country, by the time he or she had traveled through 10 European countries and changed currencies in each, only about $500 would be left - - without having spent a penny on anything but exchange commissions!

What advantages do the Europeans see?

Lower costs and faster economic growth. It will be much easier and less costly to price products and maintain a set of books. A common currency will also make price differences between countries much more visible. People will start shopping more across borders if prices are cheaper, and this will be an economic force to reduce prices throughout Europe. This will put pressure on margins, which in turn will force companies to reduce costs and become more competitive.

The Economic and Monetary Union will enable the European Union to advance the process of integration as envisioned by the Maastricht Treaty. EU nations participating in EMU expect the introduction of the euro will result in a reduction in operating costs, deeper and more liquid financial markets, lower exchange rate risks, greater ease of cross-border transactions, and greater transparency between nations. For European companies, the introduction of the euro and EMU should also create the following economic advantages:

The euro will eliminate the need to exchange currencies in business transactions among the EMU member countries;

No costs associated for hedging exchange rate fluctuations between the 11 EMU currencies;

Transparent pricing throughout the EMU;

Economic and financial stability as member nations maintain the gains of the convergence criteria of EMU, holding long-term interest rates below 7.8 percent, inflation below 2.7 percent, public debt not to exceed 60 percent of GDP, and a budget deficit of less than 3 percent of GDP. The EMU-participating countries will maintain the convergence criteria through adherence to the stability and growth pact, which exists to ensure durability of the gains of the convergence criteria.

Are there disadvantages?

Yes, but these are expected to be short term, and the long-term gains will swamp the short terms costs. One of the biggest disadvantages is the cost of converting accounting systems, cash registers, etc., over to euros. This cost has been estimated to be more than $100 billion. Additionally, the effort of translating prices from familiar currencies into euros will be a major cost. But these and other short -term costs are viewed by Europeans as an investment that will pay enormous dividends over time.

Is it only European companies and consumers who will benefit?

Not if the euro brings about more rapid economic growth. In that case, the benefits that will accrue to U.S. companies from the introduction of the euro should be similar to those that European companies are expecting. The lower transaction costs and greater transparency will benefit U.S. exporters as business will be conducted more cheaply and with greater ease. At the same time, these benefits will level the playing field within the Economic and Monetary Union, and this means there will be an increase in competition as more companies are attracted to do business in Europe. U.S. companies should be prepared to consider how to maintain their customer base, but also how to enhance their competitive advantage in Europe.

Will the euro change the way business is done?

In most cases, there will probably be changes in the way business is done in Europe. You can expect more competition from European companies, especially those that have been selling only inside their own national borders and using their national currency. There will be downward pressure on prices, and there will be pressure for prices to become more similar throughout Europe. This doesn’t mean prices for a particular product will become identical throughout Europe. Just as in the U.S. market, where regional price differences can be observed, some regional price differences could well remain in Europe.

It is clear, however, that the establishment of the euro means small- and medium-sized U.S. export companies will face changes in the business environment which need to be addressed. Small companies should already be preparing for EMU to ensure their continued success within the member countries of the European Union participating in EMU. Those areas of business that could be affected by the new monetary system include pricing, financing, invoicing, packaging, and shipping. It is a mistake for companies to view the euro as merely a shift in the type of currency being used. The economic changes that will come about from the euro could be quite significant and could affect the competition and customer base with which U.S. companies have been familiar.

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REPCOM MONTERREY TO BE HELD IN APRIL

PATRICIA DENECHAUD ELECTED WTC PRESIDENT