Prime Minister Durão Barroso’s meeting with President Bush in June 2003 highlighted the close relations between the two nations

ince 2002 Prime Minister Durão Barroso has been working to wipe away the last vestiges of antiquated pre-European Union structures, implementing tough reforms and fiscal cuts while liberalizing market conditions.

Success is at hand. In an astonishingly short period, the Durão Barroso administration slashed the budget deficit to an estimated 2.6% of GDP for 2002, thus stabilizing the economy and pulling Portugal out of the danger zone of breaching EU economic rules. Portugal’s impressive success and the phenomenal international expansion of its companies are convincing displays of its clear potential to emerge as one of the most aggressive European economies.

JOSÉ LUÍS ARNAUT Minister Assistant to the Prime Minister

Minister Assistant to the Prime Minister, Mr. José Luís Arnaut, comments on the transformations taking place in the country. He states, “Portugal is undergoing many changes at the moment in order to facilitate our full integration in the European Community and so that we can take advantage of the opportunities at hand.”

With this year’s hosting of Euro 2004, an international sporting event with global coverage, Portugal will be able to showcase its successes and to promote the country as an enticing investment location. Mr. Arnaut adds, “Portugal offers the investor a high productivity, low risk arena. It is a politically secure country. We have been through all the phases of development, and we are now ready to explore new possibilities.”

Portugal’s international role
In the wake of the U.S.-led Iraq war, Portugal has emerged as a shining example of political leadership within the European Union, driven by the nation’s focus on maintaining close ties between the EU and the United States, and Portugal’s continued support of EU enlargement. It appears clear that Portuguese political significance in Europe is on the rise. If one looks closely at Portugal’s recent history of forging strong alliances, this really should come as no surprise at all.

A staunch NATO ally since the founding of the organization, Portugal has always been an active member of the coalition. Additionally, Portugal was a strong advocate of independence for East Timor, a former Portuguese colony, and has committed troops and money there in close cooperation with the U.S. and the United Nations.

During the 1980s and 1990s Portugal worked hard to strengthen other former colonies such as Angola and Macau through the brokering of peace treaties and the defining of sovereignty agreements, when current Prime Minister Durão Barroso was the Portuguese Secretary of State for Foreign Affairs and Cooperation. He comments, “Portugal has a new, young, and reformist government. We are part of a new generation of Portuguese decision makers who believe that Portugal will soon be among the most developed countries in Europe, and that we as a nation have a key part to play in the European Union decision process.”

Firm relations with the United States
Portugal lies opposite North America just the other side of the Atlantic, the first European landmass to greet New World visitors. Perhaps fittingly, the country has been a longstanding ally of the United States. In fact, Portugal was the first neutral nation to recognize the young American republic after the Revolutionary War, and today sizable Portuguese communities in Massachusetts, Rhode Island, New Jersey, California, and Hawaii support the strong ties between the two nations.

JOHN N. PALMER Ambassador to Portugal

Portugal is a strong Atlanticist, and there is strong Portuguese-U.S. cooperation on defense issues. U.S. Ambassador to Portugal, Mr. John N. Palmer, agrees that Portuguese-U.S. relations can be seen from the perspective of three stages: post-1974 revolution, post-1986, when Portugal entered the European Union, and post-Iraq war. He adds that this latest stage could have large implications for the two nations, when one considers the impact of the new NATO headquarters based outside Lisbon. “The U.S. Defense Department has been looking at many Portuguese companies to see which have the possibility of emerging as world class technological developers, so in the area of defense alone, I think we should see some very positive developments. I think there is great opportunity in this country.”

Mr. Palmer also has a very positive view of U.S.-Portugal trade and business collaboration. He comments, “Portugal is a growing market and there are lots of opportunities here. Three examples stand out in my mind: the banking industry, which now has some more advanced institutions than some of those in New York; secondly, the wine industry, where exports to the U.S. have the potential to double; and polymers, which is a world class industry here in Portugal.”

A helping hand for business
Any U.S.-based company considering Portugal as an export market can find all the information and assistance necessary to successfully capitalize on the opportunities in the country at www.buyusa.gov/portugal/en. The site also offers a variety of services to help expand and strengthen the position of companies already selling or investing in Portugal. Whatever your business situation is in the country, the Commercial Service offices in Lisbon or Porto can assist, as can the U.S. Embassy staff (www.american-embassy.pt).