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PORTUGAL

grants intended to modernize selected Portuguese industries. Agricultural products also continue to receive some EC subsidies related to the Common Agricultural Policy.

7. Protection of U.S. Intellectual Property

Portugal is a member of the World Intellectual Property Organization and is a party to the Bern and Universal Copyright Conventions and the Paris Convention for the Protection of Industrial Property. Portugal grants

intellectual property protection to domestic and foreign firms and favors negotiation of strong international enforcement in the GATT Uruguay Round.

Patents are granted for 15 years and are not renewable. Enforcement is sometimes weak, but the Government is concerned about violations. In 1991, Portugal enacted patent protection for chemical products, pharmaceuticals, and foodstuffs. Portugal's Patent Law also contains compulsory licensing provisions for insufficient use.

Trademarks are granted for 10 years and are renewable. Duration of copyright is life-of-the-author plus 50 years. Computer programs are not explicitly protected under copyright. The Government has taken measures to prevent unauthorized copying of video and audio cassettes and software. Nevertheless, illegal, small-scale copying is fairly widespread.

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The Constitution ensures the right to establish unions by profession and industry and this right is respected in practice. There are two principal labor confederations, the democratic General Union of Labor (UGT), and the Communist-led Confederation of Portuguese Labor (CGTP-IN), as well as a recently organized grouping of non-affiliated unions, the Independent Labor Convention (CSI). Unions function without government interference and exercise their right to strike freely and often.

b.

The Right to Organize and Bargain Collectively

Unions are free to organize without government or employer interference. Collective bargaining is guaranteed by the Constitution and practiced extensively in the public and private sectors. When collective bargaining disputes lead to prolonged strike action in key sectors (for example, health and transportation), the Government is empowered to order the workers back to work for a specific period. The Government has rarely done so in practice. When collective bargaining fails, the Government, at the request of either management or labor, may appoint a mediator. Union officials and members are protected by law against antiunion discrimination, and this law is observed in practice.

C.

PORTUGAL

Prohibition of Forced or Compulsory Labor

Forced or compulsory labor is prohibited and does not exist in Portugal.

d. Minimum Age for the Employment of Children

By statute, children under the age of 15 may not work. Minimum age for employment laws are generally respected in practice, but there are reports of abuses in the textile and shoe industries.

e. Acceptable Conditions of Work

Differentiated national minimum wage levels are set. The statutory maximum workweek is 44 hours. Workers are guaranteed 15 days of paid leave per year. Compliance with these regulations by employers is good and is monitored by regional inspectors of the Employment and Social Security Ministry. Employers are legally required to carry accident insurance and are responsible for accidents at work. Legislation concerning safety and health is considered inadequate by unions. The General Inspectorate for Labor lacks sufficient funds and inspectors to enforce existing laws effectively, and the ability of workers to remove themselves from hazardous situations is limited.

f. Rights in Sectors with U.S. Investment

U.S. capital investment is significant in the following goods-producing sectors: chemicals and related products; electric and electronic equipment; transportation equipment; and personal care products. The rights afforded workers in firms in these sectors are essentially the same as the rights afforded workers in other firms and/or sectors.

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(D) -Suppressed to avoid disclosing data of individual companies

Source:

U.S. Department of Commerce, Survey of Current Business
August 1991, Vol. 71, No. 8, Table 11.3

ROMANIA

Key Economic Indicators

(Romanian Lei (RL) or U.S. Dollars as Indicated)

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U.S. Embassy estimate or official U.S. Government Government of Romania; c International financial

ROMANIA

institutions

1. General Policy Framework

Since the fall of the Ceausescu regime in December 1989, Romanian trade policies have been substantially liberalized, although the demand for U.S. exports has been mitigated by the lack of hard currency. A new bilateral trade agreement to include, inter alia, restoration of Romania's Most Favored Nation (MFN) status, was initialed on October 28, 1991. A U.S. decision on when to submit the new agreement to Congress for approval will be made in light of further progress toward democratic pluralism, especially the holding of free and fair elections.

The Romanian economy is in the midst of a prolonged downturn brought about by a painful restructuring from a centrally planned to a market economy, the collapse of the Council for Mutual Economic Assistance (COMECON) socialist trading bloc, and a severe energy shock. Real Gross Domestic Product (GDP) fell 7.9 percent in 1990 and another 5 percent in 1991. Salaries have failed to keep pace with inflation (estimated at more than 150 percent for 1991), resulting in a sharp decline in real wages and growing impatience among workers. Unemployment at the close of 1991 probably exceeded 10 percent, and the number of underemployed was even higher, reflecting a 17 percent drop in industrial output caused by shortages of imported raw materials, diminished markets for Romanian exports, and cautious monetary policies.

While some government officials foresee a resumption of economic growth (led by the agricultural sector) in 18 to 24 months, available economic indicators so far indicate at best a modest slowing in the rate of decline. However, substantial progress has been made in preparing the legal framework for major reforms in banking and finance, land use and ownership, foreign investment, taxation, and privatization of industry. The government moved to a unified foreign exchange rate in November 1991, a major step toward full convertibility of the Romanian leu. Financial and technical assistance has begun to flow in from abroad, marking the beginning of Romania's reintegration into the world economy after a long period of political isolation. The International Monetary Fund, World Bank, and European Bank for Reconstruction and Development are active in Romania.

As a result of fiscal reforms already implemented, adherence to International Monetary Fund (IMF) fiscal targets, and an unanticipated inflation-fed revenue windfall during the first half, the central government posted a relatively modest deficit for 1991. Subsidies for energy imports constituted a major share of the deficit. These will be substantially reduced with massive domestic fuel price adjustments adopted in mid-November. Taxes on salaries and retail turnover provide three-fourths of revenues. Exports are not taxed, and tax incentives exist for foreign investors. Romania is a member of the GATT and has sought to accommodate General Agreement on Tariffs and Trade (GATT) membership obligations in its new trade and tax laws.

The Romanian economy operates mainly on a cash basis, and

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